CEO Watch - Ian McCarthy, Beazer Homes

Beazer Homes BZH (NYSE) CEO, Ian McCarthy has more problems than just an SEC investigation, declining profits and job cuts. CTW Investment Group, a shareholder advisory group, in a letter to the board has called for McCarthy's head.

With Beazer’s stock down nearly 80% this year and cancellations reaching a staggering 68% last quarter, decisive action by Beazer’s independent directors is required to restore investor, creditor, customer and regulatory confidence. Specifically, we call on you to immediately:

1. Replace CEO Ian J. McCarthy;
2. Name an independent board chairman; and
3. Establish a Legal and Regulatory Compliance Committee.

Rather than create sustainable, long-term value for shareholders, Mr. McCarthy has garnered egregious compensation while allowing his management team to violate federal law, improperly account for land development costs and sale-leaseback transactions, and provide undisclosed loans to executives.

Up to this point the company has not responded to the request. With the housing situation only expected to get more difficult, the company still reeling from financial related improprieties, suspension of the quarterly dividend and growing job losses, McCarthy will have a hard time saving his position.

Stay tuned as this situation heats up.

For more:

Forbes
CNN Money
CTW Investment Group Letter
Atlanta Business Chronicle
Schaefer's Research
Houston Chronicle
Financial Week