PulteGroup Founder Calls to Remove Richard Dugas as CEO
April 11 2016 - 10:30AM
Dow Jones News
The founder of home builder PulteGroup Inc. again called for the
company's chairman and chief executive to step down Monday.
In a blistering letter to the company's board members,
PulteGroup founder William J. "Bill" Pulte said his decision to
appoint Richard Dugas to chief executive more than a decade ago was
"perhaps the biggest mistake of my career."
Allowing Mr. Dugas to remain for in place for another year would
put "the personal interests of Richard Dugas ahead of the interests
of the company and works to the detriment of the shareholders, the
employees, and our customers, who are watching a board protect a
failed CEO."
PulteGroup, the nation's third-largest home builder, announced
last week that Mr. Dugas would step down next year, at the request
of Mr. Pulte, 83 years old, the company's largest shareholder.
Since then. the two sides have been in a bitter standoff, with Mr.
Pulte insisting that he be replaced immediately.
In Monday's letter, Mr. Pulte cited the company's lagging
performance behind competitors D.R. Horton Inc., Lennar Corp. and
NVR Inc. in recent years. Mr. Pulte also criticized the company's
so-called value creation strategy, which focuses on reducing debt,
increasing gross margins and returning money to shareholders
through increased dividends and stock repurchases.
Mr. Pulte said the strategy" ignores creativity around product
and sales, which is the lifeblood of our company."
A spokesman for PulteGroup didn't immediately respond to a
request for comment.
Write to Chris Kirkham at chris.kirkham@wsj.com
(END) Dow Jones Newswires
April 11, 2016 10:15 ET (14:15 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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