"As we mentioned yesterday, at the end of the day, the battle that is playing out at PulteGroup is unusual only insofar as it has not occurred in the public home building space before. We've hit an age where activist shareholders exert a powerful level of influence over corporate strategies, tactics, and decision-making.” That’s how John McManus, editorial director of our sister magazine Builder, described the odd fight for control that is happening in the board room of one of the country’s largest home building companies. Well, if home building was lucky before, then its magic rabbit’s foot has lost all its juice.
Company founder Bill Pulte, who stepped down as chair and CEO in 2010, his grandson, and one member of the board have taken up metaphorical arms to force out the current CEO, who they see as damaging their brand and the future of the company. McManus took a brief look at the situation already, just reporting and not siding with anyone in particular and trying to be generous with all parties involved. In this article, he talks with grandson Bill, who has no real, direct relationship with the company aside from sharing the name … oh yeah, and using the name as the basis of his own capital management company which is also in the real estate business. “Young Bill Pulte's present and future in business ties directly to how PulteGroup performs, financially, operationally, and the trust that it continues to generate among stakeholders,” McManus writes. “He and his grandfather are upset. They hasten to say that it's not with the organization, its associates, and its operational team, but rather, with an individual and his decision-making, his areas of focus, and his direction of the enterprise.”
Read the full story at Builder.