FIDUCIARY TRUST COMPANY
Fiduciary Trust Company, located at 175 has flourished under the management of
Federal Street in Boston, stands as one Daniel A. Phillips, who has served as its
of the city’s oldest and finest financial chief executive since 1992. During his
institutions. Its origins date to the late tenure as president, chief executive officer
nineteenth century, when Boston’s emer- and director, Phillips has overseen a num-
gence as a flourishing capital market ber of highly successful business innova-
led to the creation of trust companies tions, including the company’s growth as
to manage, enhance and preserve newly an employee-owned business following
acquired wealth. Founded in 1885 by implementation in 1986 of an employee
Robert H. Gardiner as the Gardiner Fam- stock ownership plan. Phillips charac-
ily Trust office, the business functions terizes staff continuity and accumulated
today much as it did then in its manage- experience as positive consequences of
ment and care of investment property, the ownership plan: average length of
continuing in the tradition of preservation service for investment officers is 15 years,
of family wealth for present and future President and CEO Daniel A. Phillips. with managing directors averaging 20
generations. years of service. Company ownership by
Fiduciary’s clients—some direct de- Firm professionals, serving as trustees, its own directors, officers and employees
scendants of those originally served by investment managers, executors and cus- also generates an institutional indepen-
the company—continue to benefit from todians, work as a unit to provide clients dence, which affords safety from the
the firm’s straightforward objectives of with specialized services, including finan- mergers and consolidations that have
gradual wealth accumulation in conjunc- cial planning, income and estate tax become part of today’s economic mar-
tion with capital preservation over time. guidance and preparation, educational ketplace.
The headquarters of Fiduciary Trust Company. funding, family and charitable gifts, and Phillips’ signature contribution to firm
the establishment and ongoing ad- management has been his singular cham-
ministration and review of trusts pionship of women in the workplace. A
and estate plans. The founders’ distant cousin of nineteenth century
provision of investment and trust suffragette Susan B. Anthony, he has
services as their sole objective appointed seven women to Fiduciary’s
continues to be honored at Fi- 25-member Board of Directors. One half
duciary, which has resisted diver- of the firm’s current staff members are
sification despite industry trends. women. The Boston Club, an association
Clients today benef it from dedicated to increasing the number of
business practices established over women on corporate boards, applauds
100 years ago: Fiduciary profes- Phillips for “working ceaselessly on this
sionals manage wealth vigilantly, mission.” During their 25th anniversary
and on an individual basis, for in 2002, the organization presented him
long-term investors with accumu- with a Special Award for Leadership in
lated capital who wish to enhance the Advancement of Women to Fiduciary.
and protect its use for their life- He characterizes his views in a February
time and secure its safe transfer to 8, 2002 article in the Boston Business
future generations. Toward this Journal, stating that not only is support
end, younger family members are of women the right thing to do, it is good
brought into the estate planning for business. Women account for more
process to prepare them for the than half of the population, and their per-
responsibilities of inherited spective on business decisions is valuable.
wealth. Professional advisors Professional women have a strong advo-
serving generations in one family cate in Phillips, who also notes that much
strive to establish a responsible remains to be done in breaking down “the
lifetime approach to the care and old-boy network.”
prudent use of wealth. Phillips also expresses pride in
The company, which manages Fiduciary’s commitment to community
over $10 billion in client assets, service, which has included local under-
CHRONICLES OF LEADERSHIP
tion with the corporate gover-
nance model adopted by the
company’s Board of Directors in
1999, with an emphasis on the
use and implementation of state-
of-the-art computer technology
for the benef it of both staff
members and clients. Accord-
ingly, 2001 saw an upgrade to
Fiduciary’s Internet website with
the addition of the Private View
program, which allows clients
to view their accounts via the
Internet. The company’s LAN
system was ref ined and en-
hanced, as was Global Plus, its
computerized trust system.
Its 135 employees continue to
be Fiduciary’s greatest asset.
Service awards distributed during
Officers and directors, left to right: Charles C. J. Poor’s 500 index. The company’s policy the 2001 company dinner included
Platt, Jonathan R. Phillips, Susan R. Gunderson, of careful investment selection, measured awards honoring 12 employees for 270
Daniel A. Phillips, Charles R. Eddy, Douglas R.
Smith-Petersen, Robert N. Karelitz and Robert G. investment diversification and individual years of service. One award honored 35
Holdway. portfolio supervision led again to an years of service while three others hon-
writing of public television station above average return for clients. Earn- ored employees retiring after 30 years.
WGBH in Boston. Many employees pro- ings per share for the year increased by State-of-the-art technology enhances
vide pro bono service to various nonprofit 15 percent, and company revenues ex- portfolio management, but it is best used
community organizations, educational ceeded $40 million for the first time in with the values of, in Phillips’ words, the
institutions, foundations and cultural its history. The market value for a single “human judgment and interpersonal
institutions, including national organiza- stock share, while down 2 percent in skills” that remain the cornerstone of
tions such as the United Way, the Y.W.C.A. 2001, showed a very strong market per- Fiduciary’s success.
and local organizations as diverse as the formance throughout the ’90s, including
Paul Revere Memorial Association and an increase of 57 percent in 2000.
In the fall of 2001, Fiduciary adopted A meeting of the investment committee, left to right:
the Christmas in the City Foundation. Em- Charles C. J. Platt, Paul G. Curtis, Douglas R.
ployee commitment to such organizations a new strategic plan for management. Its Smith-Petersen, Alicia F. Manning, Thomas A.
is in keeping with the CEO’s goal of offer- implementation would work in conjunc- DeMarco, Laura N. Rigsby and W. Douglas Burden.
ing employees an integrated balance that
includes “their productive work, their
immediate and extended families, and
our shared responsibility to the commu-
nities in which we work and live.” The
company also places a high value on staff
training, and over the past decade has
offered education in many areas, in-
cluding motivation, stress and time
management, diversity, communication,
technology, violence in the workplace
and sexual harassment education.
Two-thousand one proved to be a very
good year for Fiduciary and its clients,
despite representing the second year of
negative returns for the Standard &