Every CEO will tell you that culture is important, but few of them seem to actually mean it. Terry Turner is an exception. He’s leveraged culture as the CEO of Pinnacle Financial Partners (NASDAQ:PNFP) to produce the second-best total shareholder return over the past 17 years in the bank industry. Listen in to this segment of Industry Focus: Financials, where we discuss what makes Turner one of the best bankers of the modern era.
A full transcript follows the video.
This video was recorded on Aug. 7, 2017.
Gaby Lapera: Let’s turn to Terry Turner, haha, of Pinnacle Financial Group, who has bet the farm on culture. This bank, to give you guys some context, this bank didn’t exist 20 years ago. And now, it’s a huge bank.
John Maxfield: Terry Turner, he’s the CEO and founder of Pinnacle Financial Group, which is this Bank based in Nashville, Tennessee. Here’s an interesting point about Nashville, Tennessee. There was a time when it was known as the Wall Street of the South because it had all these major regional financial companies headquartered there. Well, through the consolidation wave that we talked about in the context of Hugh McColl, all these banks that were based in Nashville and financial companies that were based in Nashville where eventually bought by all these other companies headquartered elsewhere. And 1999 was the year that the last major regional bank that was headquartered in Nashville was bought out by a bank named AmSouth Bank, which was later bought out by Regions Financial, they’re based in Alabama. Terry Turner and two of what he calls his running mates, a guy named Rob McCabe and another guy named Hugh Queener, they were top-level executives of First American, which was the Nashville-based bank that was bought out by AmSouth. They were top-level executive at the time. And one of the things that Terry and Hugh and Rob noticed at the time was that, in this consolidation wave, customer satisfaction at banks went down. And when customer satisfaction at banks goes down, market share becomes vulnerable, and it can move to other banks. So, these guys got together and said, “Why don’t we start our own bank? And we’re going to predicate the entire strategy, the entire culture at this company on stealing market share from these larger regional competitors. And what we’re going to do is, we’re going to set up our control system, the way we compensate people, the…