Rick Caruso steps down from his role as Chair of the USC Board of Trustees

Rick Caruso announced on Tuesday morning his decision to step down from his role as the Chair of the USC Board of Trustees, just days after confirming his candidacy for the Los Angeles mayor’s race.

“Serving as Chair has been one of my greatest honors. I am grateful for your support, dedication, and partnership over the last four years, as we addressed and resolved tough issues and built a solid foundation for USC’s future,” Caruso wrote in an email to the USC community.

Caruso served as the Chair for the Board of Trustees since 2018. During his time as Chair, many major changes were made at the university, including the appointment of President Carol Folt.

Some experts say it is not out of the norm for a candidate to leave whatever position they hold while running for office.

“It is common for any leader of a major university or businesses to step down if they are running for public office to avoid the appears of a conflict of interest, “Art Auerbach, a USC Professor of Political Science, said in regards to some of the reasons why Caruso had to resign from his prominent role at USC.

In his statement, Caruso stressed the importance of improving connections to the USC community. “The board conducted extensive and numerous listening sessions with students, faculty, administrative leaders, and members across our USC community.”

Before serving as Trustee Chair, Caruso earned his undergraduate degree from USC Marshall School of Business in 1980. He went on to have a successful career in real estate development for significant L.A. properties, such as The Grove, Americana and Palisades Village through his development firm Caruso Affiliated Holdings, according to a Los Angeles Times report.

Outside of real estate, Caruso is known for his philanthropic work, like his Caruso Family Foundation, which is “dedicated to supporting children living in areas of high crime and extreme poverty through educational opportunities.” He has also served in the civic service realm of L.A., as Commissioner of the Los Angeles Department of Water and Power from 1985-1993 as well as in 1997-2000 and President of the Los Angeles Board of Police Commissioners from 2001-2006. In 2020, Caruso also served on a task force for the White House on how to reopen the U.S. economy after the COVID-19 shutdown.

The Los Angeles Times recently reported that he switched his party affiliation to Democrat from no party preference, and was previously a registered Republican until 2011. Despite considering running for elected office multiple times over the past twenty years, he has never held any elected position.

In his farewell email, Caruso pointed out the Board’s many accomplishments, including the creation of an independent health system board, implementation of a new EEO-TIX office, and the creation of new oversight models, like the Office of Professionalism and Ethics and Compensation Committee. But he also was elected at a time of heightened desires for transparency from the university, which he did not live up to.

In response to Caruso’s announcement, Folt released a statement highlighting some of his accomplishments as Chair of the Board.

“Chair Caruso has been an inspired Board leader and his passion for and commitment to USC run deep. Ensuring the well-being and opportunity to excel of our students, staff, and faculty has always been his guide,” she wrote.

She stated that the university is committed to appointing a new board leader who will tackle the important issues concerning the USC community.

The nomination and governance committee is moving forward in the search for Caruso’s replacement and he will step down as soon as the transition process is complete. Folt said she expects the selection process to be completed by the end of the spring semester.

Folt said in an interview with Annenberg Media that although Caruso is stepping down as Chair, he is still on the Board. The Board’s bylaws do not require a trustee to step down if they run for public office. Whether Caruso remains on the Board if elected mayor is his decision.

“He will, of course, need to work with the city,” she added. “They’re going to have their own rules about that.”

When asked if Caruso will return as chair if he loses the mayoral election, Folt said, “he’s announced what he’s going to do and we’ll cross these other bridges when we come to them.”

As of right now, “The university is moving forward with ambitious goals for the years ahead, and we are well positioned to achieve our mission,” Folt wrote in her statement. “I am confident that our Board of Trustees will select a Chair who will continue the important and demanding work that began in 2018.”