Industry News

Union opposes reelection of home builder CEO

Laborers' union charges poor corporate governance

A construction union pension fund, a shareholder in home builder Toll Brothers Inc., is asking fellow shareholders to join in withholding votes to reelect the company's chairman and CEO, and to reject his proposed salary bonus plan. The Laborers' International Union of North America charged that the company has exhibited poor corporate governance practices and that its leaders have failed company shareholders. Frederick N. Cooper, a Toll Brothers spokesman, said company officials are familiar with the letter that the union pension fund has disseminated to shareholders "and we are reviewing it." Toll Brothers this month reported its revenue in the first quarter of the current fiscal year was $842.7 million, down from $1.09 billion in first-quarter 2007. The company had net contracts valued at $375.3 million in the first quarter, down 50 percent compared to the value of contracts in first-quarter 2007. "The housing market remains very weak in most areas. Based on current tra...