EXCLUSIVE: Problems In The PulteGroup C-Suite? Ex-Insider Reveals Management Struggle

The fallout from a 2022 lawsuit filed by philanthropist and investor William (Bill) J. Pulte against homebuilder PulteGroup Inc’s PHM onetime prospective COO Brandon Jones continues to widen, as the company has terminated another top executive. 

Pulte, 34, the grandson of PulteGroup founder William J. Pulte, was a board member at PulteGroup from September 2016 to May 2020. He is no longer affiliated with the company and is the CEO of Pulte Capital Partners, a private equity firm based in Chicago.

What Happened: Michelle Hairston, who Pulte said co-led the investigation into Jones' creation of a network of fictitious accounts to harass Pulte and his family, has been terminated and given a large negotiated severance package, according to a statement released Tuesday by the Pulte family. 

This marks the second time an executive under CEO Ryan Marshall's leadership has been terminated, he said, leaving the company in what Pulte describes as a state of chaos, adding that Marshall now oversees much of the company's operations and human resources.

The Pulte family alleges the PulteGroup is grappling with the fallout, and it is having a significant impact on the organization's management and future direction, attributing this information to company employees. 

Benzinga has reached out to PulteGroup for comment and have not received a response at the time of publication. 

Problems In The C-Suite? According to a Pulte family press release issued on Tuesday, some of the issues at the Fortune 500 homebuilder may be coming directly from its CEO and could affect shareholders.

Hairston remained listed as a “Senior Vice President, Human Resources” on PulteGroup’s website for over 30 days after her termination, the Tuesday press release from the family said, citing SEC documents.

The SEC requires companies to file form 8-K within four business days of a significant management change, which includes information about the departing executive and the newly appointed one.

Marshall sold stock on Feb. 2, and disclosed in a Feb. 6 10-K filing that Hairston had been fired, but did not update the management change on the company's website for 30 days, Pulte said. 

“I think it’s important for PulteGroup to not hide or confuse anything from proper public disclosure so shareholders, employees, and other can feel safe,” he told Benzinga. 

Why It Matters: Hairston’s ousting follows Jones, who was slated to become the company's chief operating officer at the beginning of 2023, but was fired after setting up an intricate network of bot accounts on Twitter to stalk and defame the founder's grandson, the Pulte family said in the release. 

“While we applaud the Board of Directors for finally taking down the website that falsely listed Ms. Hairston as an active executive, when CEO Ryan Marshall would not, and that confused PulteGroup shareholders and employees,” the Pulte family said.

"The departures of top executives Brandon Jones and Michelle Hairston (the #2 and #3 executives) show that current CEO Ryan Marshall has a chronic management problem that needs to be fixed immediately by the board of directors," the Pulte family added.

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