NAPLES, Fla., June 15, 2016 /PRNewswire/ -- William J.
Pulte, the founder and largest shareholder of PulteGroup, Inc.
("PulteGroup" or the "Company") (NYSE: PHM), with ownership of
approximately 8.9% of the Company's outstanding shares, announced
today that he has issued a letter to PulteGroup's Board of
Directors detailing his views on the necessary skills a viable CEO
candidate should possess, which include:
- Public company CEO experience in the homebuilding sector or at
least 25 years of homebuilding and land experience;
- Land acquisition and management in multiple homebuilding
operations in multiple U.S. markets;
- Senior level management experience in recessionary
environments; and
- Be a consensus builder who has a track record of building
effective senior leadership teams.
The full text of the letter follows:
June 15, 2016
Dear Members of the Board:
As the founder and largest shareholder of PulteGroup, Inc.
(NYSE:PHM) ("PulteGroup" or the "Company"), I am encouraged that
the Board of Directors (the "Board") has agreed that the selection
process for PulteGroup's next CEO is of paramount importance and
urgency and has sought my input as the special committee of the
Board conducts the process. I believe including shareholders' views
in this process is critical and I am confident that with the proper
search process, a world-class leader can be recruited to succeed
Richard Dugas and restore value for
the benefit of all of the Company's shareholders.
I was pleased to receive director Patrick O'Leary's letter dated May 25, 2016 advising me that the Board had
retained an executive search firm to assist in the CEO search
process and inviting me to propose potential candidates to succeed
Mr. Dugas. As I advised Mr. O'Leary in a response letter on
June 2, 2016, in order to bring
PulteGroup back to prominence for the benefit of all shareholders,
I strongly believe that PulteGroup's next CEO must, at a minimum,
possess the following qualifications. First, any viable candidate
must have public company CEO experience in the homebuilding sector
or at least 25 years of homebuilding and land experience –
PulteGroup needs a real seasoned veteran, not someone who will be
learning on the job. It is also important that the next CEO has
experience acquiring land and managing multiple homebuilding
operations in multiple markets across the
United States. Next, given the constant threat of economic
uncertainty, it is necessary for the Company's next CEO to have
experience successfully operating through prior recessions.
PulteGroup needs someone who has senior level management experience
in recessionary environments – the Company can ill afford to be led
by someone who will not be prepared to successfully guide
PulteGroup through the next economic downturn. Lastly, I believe
that the next CEO must be a consensus builder who has a track
record of building effective leadership teams at senior levels of
an organization and across multiple U.S. markets.
I am confident that each of the candidates that I privately
identified to the Board would make a strong CEO and help PulteGroup
emerge as a stronger, more profitable company. As I indicated to
the Board, I am interested in identifying the best individual to
lead PulteGroup and am open to considering other candidates who
possess the experience and qualifications necessary for
PulteGroup's next CEO. At the same time, I understand that the
Board has its own selection criteria for the Company's next CEO and
would be interested in discussing these criteria with the Board as
we work together toward the common goal of identifying the best
candidate to succeed Mr. Dugas at this critical time for the
Company.
As I indicated in my letter to Mr. O'Leary, given Mr. Dugas'
prior comments to me in March 2016
that he had a pre-conceived succession plan for Ryan Marshall as CEO, it is essential that the
members of the special committee and the executive search firm be
fair, truly independent and highly transparent for a valid and
unbiased search process.
With CEO succession planning being one of the most important
functions of the Board, I am happy to have brought additional
attention and sense of urgency to this critical issue. The
formation of the special committee and retention of the executive
search firm in response to my request to replace Mr. Dugas was an
encouraging start – now it is time to execute in an expeditious and
efficient manner.
Given the urgency and gravity of the decision, it is my hope
that the Board will provide PulteGroup shareholders with tangible
results of a comprehensive and independent search process no later
than July 31, 2016. Time is of the
essence and it is imperative that the Company, its shareholders and
its employees not be left in suspense regarding PulteGroup's
leadership.
Fellow shareholders, large and small, have shared similar views
regarding changes needed at PulteGroup to maximize value for the
benefit of all shareholders and have inquired as to the Company's
level of engagement with me. Shareholders have overwhelmingly
provided positive feedback with respect to my involvement. As such,
I will continue my effort to work constructively with the Board
toward the best path forward for all my fellow PulteGroup
shareholders.
I look forward to lending my expertise and working
constructively with the members of the Board to expeditiously
identify the best candidate to lead PulteGroup. I remain at the
Board's disposal and eagerly await your response.
Very truly yours,
William J. Pulte
Founder
PulteGroup,
Inc.
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SOURCE William J. Pulte