Patriot Bank, a regional bank operating 10 branches across New York and Connecticut, has awarded each of its employees 100 shares of stock as part of an incentive program to align the personal and financial interests of employees and the company.
In more than 30 years of experience in the banking industry, Christopher Johnson, the Connecticut regional vice president for Patriot Bank, said he has never seen a bank roll out this kind of incentive program.
“To be a stakeholder in a company that shows their faith in their employees, what can be better?” he said. “Our slogan is ”˜show by doing”™ and they nailed it.”
Across the bank”™s seven Fairfield County branches, single New Haven County branch and two locations in Bedford and Scarsdale in Westchester County, N.Y., a total 95 employees were given the shares of stock, which at the time of the award was trading at approximately $15 a share for a total value of $142,500.
“I think it has invigorated everybody,” said bank President and CEO Kenneth Neilson. “Everybody feels more responsible. People are energized ”” they feel good about the company they work for.
“Now when Patriot Bank customers come into one of their branches for either service or guidance they will receive financial advice from employees who are stockholders in their local community bank and are really incentivized to exceed their customer”™s expectations,” he said. “I don”™t know of any other banks that have done this.”
Johnson said the award was presented to the staff as a surprise and has been well received.
“I know I and my staff both felt just incredibly proud that the company wanted to invest in us and give us a chance to pay that investment back by helping the company do better,” he said. “Talk about empowerment. Hey, here is a piece of the steering wheel; you are part of what is driving this company.”
According to Neilson, there are no current discussions to increase stock allotments and new hires are not included, but “if the incentive program works the way we believe it will work it will probably make sense for us to do more of this in the future,” he said.
The stock award was also a thanks from the company”™s management team and board of directors for past success, Neilson said.
In fall 2015, investment banking and advisory firm Sandler O”™Neill + Partners named Patriot one of the nation”™s top performing small-cap banks. It was the only bank in New England to receive this designation among 435 publicly traded U.S. banks and thrifts evaluated across the U.S.
According to Neilson, the bank currently manages approximately $623.9 million in assets with $421.2 million in deposits.
“I have been with Patriot since day one and the people here are like family to me,” said Stamford-based banker Carmen Estevez who joined Patriot in 1994. “I am very happy that all employees now own a little piece of the place they work and spend most of their day.”
