They believed a change in the tax code meant their leasing business could more efficiently work as a telemarketing model. Hence, in 1990, they formed Pacific Rim Capital with Mills, then 29, as the president and Mirsky, then 34, as the chief executive.
It lost $6,000 in that first quarter but has been profitable ever since.
The Irvine-based firm leases forklifts, cranes and other material-handling equipment for large companies in the manufacturing and transportation industries. The company provides operating leases in the U.S., Mexico and Canada with products made by manufacturers like John Deere, Volvo and CAT.
Pacific Capital is one of the nation’s largest independent lessors that is not part of a bank.
They built their company to $195 million in sales in 2019 with $850 million in assets under management.
Minority Owned
In 2018, Pacific Rim won Honda’s top indirect diverse supplier award.
“Considering a single plant can have more than 100 vehicles in operation, managing the fleet can be quite a burden,” Honda said in a statement announcing the award.
“One innovative idea led by the supplier was an online signature process to decrease the lease contract processing time. Departments were spending too much time chasing down approvers to sign the lease paperwork, causing tight equipment deliveries and unnecessary follow up.”
Last year’s national unrest over racial tensions have provided opportunities for Pacific Rim, which since the early 1990s has been certified as a “corporate plus” minority-owned business by the National Minority Supplier Development Council.
“As a certified minority-owned supplier, many Fortune 500s are looking to provide opportunities to companies like ours,” Mills said.
Mills, who was born in Baltimore, said he has long followed the debate on racial injustice.
The Harvard graduate is a supporter of the Black Lives Matter movement, saying he prefers actions such as donations to the minority supplier group and support of organizations such CEO Action, a group of more than 1,000 companies who have made a commitment to advance diversity and inclusion in the workplace.
“I certainly see injustice out there,” Mills said. “Things need to be addressed, not with talk but with action.”
Meritocracy
The company’s co-founders said their workforce is a blend of a variety of ethnicities based on meritocracy.
“Dave and I have always seen eye to eye about building a company based on meritocracy,” Mills added. “We tend to judge people based on that.”
After almost 40 years together, the pair has split up, as Mirsky decided to retire at age 65. On Jan. 1, Mills officially became CEO.
It’s the second big change in the past two years.
In early 2019, Pacific Rim sold a 49% voting interest in the company to Japanese lessor Fuyo General Lease Co. Mills is still majority owner with 51%; Mirsky said he kept a 10% non-voting ownership stake.
Mills said the changes won’t result in a winding down of local operations; in fact, it’s looking to expand. The company has grown to 75 employees with plans to grow about 10% to 15% last year.
When contacted late last month, Mills said he was too busy to talk.
“I have no plans to retire,” Mills told the Business Journal last year. “We’ve really refined the strategy over time, and I feel confident in the strategic direction of the company.”
