8-KLeadership ChangesMaterial AgreementsExhibits & Filings

HORTON D R INC /DE/ 8-K Report, Material Agreement (Oct 3, 2014)

Filed October 3, 2014For Securities:DHI

Summary

D.R. Horton, Inc. (DHI) announced significant leadership changes effective October 1, 2014. Donald J. Tomnitz, who served as Vice Chairman, President, and CEO for many years, has retired from his executive and board roles after 31 years with the company. This marks the end of an era for a long-standing leader. Stepping into the top leadership positions are David V. Auld as the new President and CEO and Michael J. Murray as the new Executive Vice President and COO. Both Auld and Murray have extensive experience within DHI and the homebuilding industry, with Auld having been with the company since 1988 and Murray since 2002. Additionally, Mr. Tomnitz will transition to a consulting role for three years, receiving significant compensation and benefits, which includes non-compete and non-solicitation clauses, ensuring a smooth handover and continued access to his expertise.

Key Highlights

  • 1Donald J. Tomnitz, a long-time executive (31 years) and CEO since 1998, retired as Vice Chairman, President, CEO, and Director effective September 30, 2014.
  • 2David V. Auld was appointed President and CEO, effective October 1, 2014. He has over 25 years of industry experience and has been with DHI since 1988.
  • 3Michael J. Murray was appointed Executive Vice President and COO, effective October 1, 2014. He joined DHI in 2002 and has held various senior finance and operational roles.
  • 4No immediate compensation changes were reported for the newly appointed CEO, David V. Auld, or COO, Michael J. Murray, as of their appointment dates.
  • 5Donald J. Tomnitz entered into a three-year Consulting Agreement with DHI, effective October 1, 2014.
  • 6The Consulting Agreement with Mr. Tomnitz includes a tiered annual consulting fee ($1M, $1.2M, $1.4M over three years) and continued health insurance for him and his wife.
  • 7The Consulting Agreement includes standard non-disclosure, non-compete, and non-solicitation provisions, indicating a structured transition and protection for the company.

Frequently Asked Questions

D.R. Horton announced the retirement of Donald J. Tomnitz as President and CEO and the appointment of David V. Auld as the new President and CEO. Michael J. Murray has been appointed as the new Executive Vice President and COO.

David V. Auld has extensive experience in the homebuilding industry, with over 25 years in the sector. He joined D.R. Horton in 1988 and has held various leadership positions, including Region President and Executive Vice President and Chief Operating Officer.

Yes, Donald J. Tomnitz will serve as a consultant to the company for three years following his retirement, under a Consulting Agreement. This agreement includes significant compensation and health benefits, as well as non-compete and non-solicitation clauses.

Mr. Tomnitz will receive a consulting fee of $1,000,000 in the first year, $1,200,000 in the second year, and $1,400,000 in the third year. The company will also cover health insurance for him and his wife during this period. This arrangement aims to ensure a smooth leadership transition while retaining access to his expertise.