PulteGroup Chooses New CEO, Reaches Agreement with Founder
September 08 2016 - 10:40AM
Dow Jones News
PulteGroup Inc. said it had appointed a new chief executive and
named the grandson of its founder to its board, potentially winding
down a public battle over the future of the company.
PulteGroup said Ryan Marshall, its president, is now its chief
executive and that William J. "Bill" Pulte, the grandson of the
founder with whom he shares a name, is being added to the board of
directors.
Mr. Marshall replaces former CEO Richard J. Dugas Jr., who had
been embroiled in a public battle with company founder William J.
"Bill" Pulte, over the company's future. In April, Mr. Pulte
demanded that Mr. Dugas resign amid what he said was poor
performance compared with rival home builders. Mr. Dugas said in
April that he would retire early next year, but Mr. Pulte—also the
company's largest shareholder—pushed for a speedier succession
plan.
Mr. Dugas will continue as chairman through the company's 2017
annual meeting.
In a statement, Mr. Pulte, the grandson, said he and the founder
fully support the company's strategy.
PulteGroup also said its founder, who owns about 9% of the
company, will vote for any board-chosen nominee as long as his
grandson remains on the board.
"We are pleased to have a member of PulteGroup's founding family
join our board to contribute to the ongoing success of the
company," said James J. Postl, PulteGroup's lead independent
director.
In July the home builder said it would add three new board
members after hedge fund Elliott Management Corp. took a 4.7% stake
in the company. At the time, it also announced a shift in strategy,
outlining plans to slow down its growth in future land spending and
make an additional $1 billion in share repurchases.
The company also announced Thursday that after two decades,
board member Debra Kelly-Ennis is resigning.
Write to Austen Hufford at austen.hufford@wsj.com
(END) Dow Jones Newswires
September 08, 2016 10:25 ET (14:25 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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