Mike Mortensen
President and CEO
PNC Investments
Years in Securities Business: 20

I grew up in southern California, in a suburb of Los Angeles. My dad was an executive at First Federal Savings Bank of California, as it was known back then. I had the typical jobs growing up—I worked as a paper boy, and in a grocery store—and I also worked for my grandfather in his meat plant. In the summer, I'd go to work at 2 a.m. and grind hamburger for eight hours. If there's anything that will teach kids that they don't want to work in a factory, that's it. But it also taught me the value of hard work.

I studied finance at San Diego State University and in 1980, when I was a junior, I signed up for an internship at Private Ledger, which later merged with Linsco to become LPL Financial. My job was to review prospectuses of limited partnerships that involved some unusual things, such as animal breeding. They were complex, with important tax considerations, and I found them fascinating. It opened my eyes to alternative investments beyond stocks, bonds, and mutual funds.

I joined the Navy after college and attended Officer Candidate School to become a pilot, but a problem with my retina prohibited me from going that route. Then I met a woman who sold investments in a bank and it seemed like a great career. In 1989 I joined Bank of America in San Diego as a financial consultant, which turned out to be a great fit.

People didn't think of their bank that way, so there was a lack of credibility in those days. We had to go the extra mile to educate clients and build trust, and then make sure we didn't subsequently do anything to violate that trust. (Bank-based financial consultants) have come a long way in establishing credibility and gaining marketshare, and today we can compete head-to-head with anyone.

Every week a bus would bring a group of retirees to my branch. I felt sorry for one particular woman who wore the same shabby dress every week, and I made it a point to always talk to her. She approached me one day and said that I had been so nice she wanted me to advise her on what to do with some T-bills that were maturing. When we sat down, I learned she had more than $2 million worth that she intended to leave to her grandchildren. I was able to increase the value of her investment and reduce her tax burden. It felt good to help her, and it wouldn't have happened if I hadn't been polite to someone I never thought was a prospect. It was a great lesson.

I stayed in touch with Joel Calvo after he left Bank of America. When he later became president of PNC Investments in 1994, he called and offered me my first job here, as senior vice president and market director in Pittsburgh. After living in California my whole life, it sounded exciting. I thought I might be here four years, but it's now been 14. It's been a fabulous place to raise my daughters.

The biggest issue our industry has faced over the last 10 or 15 years is margin compression. Many of the big players that used to train armies of people have cut back, and there's a tremendous demand for advice today. With the decline of defined benefit plans, the retirement landscape has changed and there aren't enough people to provide advice. At PNC we're focusing on building a robust training program, which we have not done before. Historically, we hired people trained by others.

Advisors need to understand the basics. It's not about the new, exciting products. If you can get to people early and teach them to pay themselves first, to focus on savings, and to understand the importance of asset allocation, you can give them a comfortable retirement and help them afford a home.

My hobby is off-road motorcycle riding, which I did with my dad as a kid. The passion has stayed with me. My friends and I ride in some beautiful places, such as the Allegheny National Forest. I'm hoping to get my daughters interested.

As told to Pat Olsen