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American Assets Trust appoints Rady, who grew a start-up financial firm to a multi-billion dollar company, as new CEO

by | Apr 4, 2016

  • BASICS
  • Market capitalization: $2 billion
  • American Assets Trust, Inc. is a full service, vertically integrated and self-administered real estate investment trust
  • On September 14, 2015, American Assets Trust, Inc. appointed Ernest W. Rady as its CEO.
  • TRACK RECORD OF NEW CEO

Mr. Rady delivered a staggering 44X return to WestCorp’s shareholders

Mr. Rady served as CEO of Westcorp from 1973 to 2006.

  • Rady grew a start-up company into a billion dollar enterprise: Mr. Rady started WestCorp with a capital of $0.85 million in 1972 and grew it into a company that generated $1.27 billion revenue in 2006. In March 2006, the company was sold to Wachovia for $3.9 billion.
  • Significant shareholder return: The company completed its IPO in August 1986. The company’s market capitalization increased from $78 million in 1994 to $3.5 billion at the time of its acquisition in 2006, delivering a staggering 44X return to its shareholders.
  • Strong operational performance: Interest income increased from $222 million in 1995 to $1.2 billion in 2004. During the same period, net income increased from $33 million to $208 million.
  • Dividend: The company paid $149.6 million as dividend to its shareholders.
  • Suggested further reading: http://rady.ucsd.edu/rbj/2013/Summer/unrel-phila/

II. Mr. Rady’s tenure with Wachovia Corporation (NYSE: WB)

Wachovia Corporation was a diversified financial services company. Mr. Rady served as a Director of the company from 2006 to 2008. In December 2008, the company was sold to Wells Fargo and Company.

  • BIO OF NEW CEO

Mr. Rady has served as Executive Chairman of the Board of Directors since the completion of the initial public offering. Mr. Rady has over 40 years experience in real estate management and development. Mr. Rady founded American Assets, Inc. in 1967 and currently serves as President and Chairman of the Board of Directors of American Assets, Inc. In 1971, he also founded Insurance Company of the West and WestCorp, a financial services holding company. From 1973 until 2006, Mr. Rady served as Chairman and Chief Executive Officer of WestCorp. He served as Chairman of Western Financial Bank from 1982 until 2006 and Chief Executive Officer of Western Financial from 1994 until 1996 and from 1998 until 2006. He also served as a Director of WFS Financial, Inc., an automobile finance company, from 1988 until 2006 and as Chairman from 1995 until 2006. From 2006 until 2007, Mr. Rady served as Chairman of dealer finance business and California banking business for Wachovia Corporation, and also served as a Director from 2006 until 2008. Mr. Rady currently serves as Chairman of the Board of Directors of Insurance Company of the West, Chairman of the Dean’s Advisory Council of the Rady School of Management at the University of California, San Diego and trustee of the Salk Institute for Biological Sciences. Mr. Rady received his degrees in Commerce and Law from the University of Manitoba.

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