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First American Financial Corp. named a new chief executive and chief financial officer following the abrupt departure of CEO Ken DeGiorgio, who was arrested this month by federal authorities in connection with an alleged assault aboard a Caribbean cruise.
DeGiorgio was taken into custody this month for allegedly choking a fellow passenger after the man harassed the executive’s wife when she asked him to put his shoes on while on the dance floor of a Virgin Voyages cruise ship on March 31, according to the FBI and a New York Times report.
“This incident was the result of Mr. DeGiorgio standing up for his wife of over 30 years, who a man was harassing, making her feel threatened and intimidated,” DeGiorgio’s lawyers told the Business Journal in a statement.
DeGiorgio, who spent 26 years at First American, is leaving a job that rewarded him about $21 million in compensation in the past three years, including $7.9 million in 2024, according to the company’s annual proxy statement updated last week.
Its board of directors has several prominent OC executives, including Parker K
ennedy, who was instrumental in building the company and is up for reelection this year. Other board members include James Doti, president emeritus of Chapman University, and Michael McKee, who was CEO of the Irvine Co.
Chairman Dennis Gilmore, who has worked at the title insurer since 1993, including 2010 to 2022 as CEO, is now the executive chairman.
DeGiorgio, who had led Santa Ana-based First American (NYSE: FAF) for three years, was arrested April 3 after cruise ship authorities alerted the FBI of the incident.
“Violent crimes committed aboard cruise ships fall under federal jurisdiction and we take them very seriously,” said Acting Special Agent in Charge Devin Kowalski in a statement. “If you break the law at sea, expect to face consequences on land.”
A week after his arrest, DeGiorgio “ceased to serve” as CEO and board member, First American said in an April 15 regulatory filing.
“Mr. DeGiorgio’s employment was terminated without cause,” the company said.
First American never mentioned DeGiorgio’s arrest or the cruise line incident.
“We want to thank Ken DeGiorgio for his many years of service to First American,” Gilmore said in a regulatory filing.
DeGiorgio’s term as CEO coincided with the Federal Reserve raising interest rates, which caused a dramatic decline in mortgages.
During his term, revenue fell 21% to $6 billion in 2023, followed by a slight increase to $6.1 billion in 2024. Analysts are projecting 15% growth this year to $7.1 billion and another 10% climb next year to $7.8 billion.
During his three-year term, the shares declined by about 9.2%. At press time, the shares were around $59.20 and a $6.1 billion market cap.
“As the father of two daughters and husband of his high school sweetheart, Mr. DeGiorgio says it has been the honor of a lifetime to have served at the helm of First American, a great company that champions a workforce that is over two-thirds female,” his lawyers told the Business Journal in their statement.
19-Year First American Veteran Promoted to the Role of CEO
The leadership shakeup includes the promotion of longtime First American CFO Mark Seaton, 47, to CEO. Seaton, a 19-year veteran of the company and CFO since 2013, oversees the company’s federally charted bank, First American Trust, and its technology groups.
“We are looking forward to our next chapter under the strong leadership of Mark Seaton,” Gilmore said. “No one is more ready to be our CEO than Mark, who has played a leading role in our most critical strategic initiatives, which are driving the digital transformation of our business.”
Seaton said it is an honor to serve the company as its CEO.
“We have celebrated many proud accomplishments during our 136-year history, but given our extraordinary people and unique competitive advantages, I firmly believe our best days are yet to come,” he said in a statement.
As part of the c-suite reshuffling, Matt Wajner has been promoted from treasurer to chief financial officer. Wajner, who joined the company in 2009 and has been treasurer for five years, previously served as chief accounting officer and controller.
First American on April 2 — three days after the alleged assault — issued a press release celebrating a decade of being on a list of Fortune Magazine’s 100 Best Companies to Work For.
“A decade of recognition as one of the nation’s best workplaces speaks to the strength and enduring nature of our world-class culture,” DeGiorgio said in the statement. “The commitment, teamwork and integrity of our people makes it possible for us to deliver the certainty and trust to power seamless real estate transactions.’
The company is scheduled to report first quarter results on Wednesday, April 23.
Revolving Door: Recent CEO Exits in OC
Ken DeGiorgio’s sudden exit from Santa Ana-based First American Financial Corp. (NYSE: FAF) follows other high-profile departures of seven other CEOs leading companies with headquarters in Orange County over the past 18 months.
Here’s a list:
• In March, loanDepot Inc. (NYSE: LDI) said CEO Frank Martell would be resigning effective June 4 at the company’s annual stockholder meeting.
• In February, Staar Surgical Co. (Nasdaq: STAA) said Tom Frinzi, who served as CEO for two years, was being replaced by lead independent director Stephen Farrell. The exit came amid disappointing sales at the Lake Forest-based maker of implantable lenses.
• In September, Joe Kiani resigned as CEO of Masimo Corp., the medical device company he founded in 1989. The week before he resigned, Kiani lost his board seat after a two-year proxy battle with activist investor Politan Capital Management.
• Brian Niccol, CEO of Newport Beach-based Chipotle Mexican Grill Inc. (NYSE: CMG) since 2018, was poached by Seattle-based Starbucks last year. Niccol, known as a turnaround specialist for struggling chains, runs Starbucks from Newport Beach.
• Jim Conroy stepped down as CEO of Boot Barn Holdings (NYSE: BOOT) Nov. 22. He left the Irvine-based Western apparel chain to take the top position at Ross Stores Inc. (Nasdaq: ROST).
• Terran Orbital co-founder Marc Bell retired as president and CEO last year. He was succeeded by Peter Krauss in October 2024, after the Irvine-based maker of small satellites was acquired by Lockheed Martin.
• Last May, Xponential Fitness Inc. (NYSE: XPOF) announced the resignation of CEO Anthony Geisler. A month later, the company said he would be replaced by Mark King, the former CEO of Irvine-based Taco Bell.
—Nancy Luna