Atlanta, Georgia based PulteGroup, the home building company announced a strong quarterly report and witnessed its stocks climb, following the news. The company also struck a deal with Paul Singer's Elliott Management.
PulteGroup agreed to add three new directors to its board. Two of the new members will help choose its next CEO when it's current CEO Mr. Dugas leaves.
The two new directors to be included in the committee who will search for a new CEO include John Peshkin, ex- CEO of Taylor Woodrow Homes and Joshua Gotbaum, ex- CEO of U.S. Pension Benefit Guaranty Corp. Another new member in the board will be Scott Powers, ex- CEO of State Street Global Advisors.
A conflict between Mr. Pulte, company's founder and his chosen successor came out in the open in April, when PulteGroup announced that Mr. Dugas willresign in May 2017. Mr. Pulte did not seem very pleased with the news and published an open letter which criticized the present CEO's performance saying he should immediately resign.
Elliott Management Corp, the Paul Singer managed hedge fund revealed its stake in the company in June. The U.S based hedge fund management firm persuaded the PulteGroup to not only add three new directors to its board but also to cut $7 billion investment in new land and buy back more shares.
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