PulteGroup shares fell by as much as 9% on Monday after the company announced that its CEO is retiring, following pressure from its founder.
The homebuilder said in a statement Monday that Richard Dugas informed the board of his plans to retire at the May 2017 annual meeting.
PulteGroup said its founder Bill Pulte, with his grandson and Jim Grosfeld, a board member he appointed in December, recently demanded a new CEO and direction for the company.
“In an effort to avoid a contested public battle that would not be in the interests of shareholders, Mr. Dugas offered to accelerate and make public the Board’s succession plan, prompting today’s announcement,” the company’s statement said.
It noted that Dugas catapulted earnings from a loss of $310 million in 2011 to income of $816 million last year.
The board has created a search committee that is considering internal and external candidates for the CEO role.
This chart shows the drop in the company’s stock on Monday: