PulteGroup Chooses New CEO, Reaches Agreement with Founder

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 [e-mail]

(END) Dow Jones Newswires

September 08, 2016 10:25 ET (14:25 GMT)

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