Severance on the high seas: First American CEO to receive fat payout following cruise ship assault charge

by Jonathan Delozier

An illustration of the Virgin Voyages cruise ship in the Caribbean with piles of money surrounding it. (Image created with ChatGPT4o)

Ken DeGiorgio, former CEO of First American Financial Corp., will collect a hefty payout following his termination from the title insurance giant, according to a shareholder report filed with the U.S. Securities and Exchange Commission.

First American announced that DeGiorgio’s employment had been terminated “without cause,” allowing him to receive a severance package worth an estimated $18.6 million.

The payout includes $7.24 million in severance, $9.14 million from accelerated vesting of equity, and $2.2 million under the company’s retirement plan.

DeGiorgio was ousted earlier this month after being arrested and charged with a March 31 assault while on a Virgin Voyages cruise in the Caribbean.

According to an FBI criminal complaint, DeGiorgio was traveling near San Juan, Puerto Rico, when he was accused of choking a barefooted passenger at the On the Rocks bar. The incident was reportedly captured on surveillance footage and witnessed by ship security.

DeGiorgio’s legal team has maintained that he was not the aggressor in the altercation, which reportedly stemmed from a ship passenger making a “crude remark” to DeGiorgio’s wife.

Had DeGiorgio been terminated for cause — a rarity for CEOs at publicly traded companies — he would not have been eligible for any severance compensation, First American stated.

First American has appointed Mark Seaton as its new CEO following his 10-plus-year tenure as the company’s chief financial officer.

In addition to managing all financial-related activities, Seaton has overseen First American Trust, the company’s federally charted bank, as well as First American’s technology group. Seaton joined First American in 2006.

DeGiorgio had served as CEO since 2022. He joined the company in 1999 and has overseen banking operations, the international division and multiple corporate functions across his tenure. He received $7.8 million in total compensation last year, according to SEC filings.