Unions Seek to Increase Management Accountability at Pulte Homes through Shareholder Proposals at Annual Meeting

Contact: Robert Masciola (202) 294-1590

The AFL-CIO is supporting a number of shareholder proposals at the Pulte Homes annual meeting on Thursday, May 10, which sets the stage for increased management accountability to shareholders.

"These proposals heighten director responsiveness to shareholder concerns. We're backing these shareholder proposals because working family shareholders deserve a strong company focused on long term performance," said AFL-CIO Secretary Treasurer Richard Trumka. "These proposals are a major first step in improving this company's corporate governance."

The AFL-CIO supports the following shareholder proposals:

• Electing Directors by Majority Vote (Item #3)

Pulte's current policy whereby a director who has received a majority withhold vote can serve on the Board, albeit with a high degree of further scrutiny, does not provide sufficient Board accountability. This approach fails to address investor concerns that these directors will truly represent their interests.

• Annual Director Elections (Item #4)

This proposal seeks to declassify the Board for the purpose of electing directors. At present, the Pulte Board is divided into three classes with only one-third elected annually to three-year terms. This policy should change to provide shareholders an official forum to evaluate Board member performance on a yearly basis.

• Responsiveness to Majority Shareholder Votes (Item #5)

The best way to ensure that shareholders maintain a meaningful voice in the governance of their company is for a committee to be formed in response to any shareholder proposal supported by a majority of the votes cast - unless the Board takes official action on the proposal within 180 days of the vote. It is important that this measure take effect at Pulte since in years past the Board has ignored proposals that have received majority support.

For copies of the proposals, please call 202-637-3900