Who Owns Meritage Homes Company?

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Who Really Controls Meritage Homes?

Delving into Meritage Homes SWOT Analysis reveals a fascinating story of growth and transformation. Understanding the ownership structure of Meritage Homes is key to grasping its strategic moves and future prospects. From its humble beginnings to its current status as a major player, the evolution of Meritage Homes' ownership tells a compelling tale.

Meritage Homes, a publicly traded company since 1997, has seen its ownership landscape shift dramatically. This exploration will uncover the key players behind Meritage Homes, from the founders to the institutional investors shaping its destiny. Learn about the Meritage Homes stock, the influence of the Meritage Homes executives, and the company's remarkable history.

The story of Meritage Homes begins in 1985, when Steve Hilton and William 'Bill' Cleverly joined forces to establish Monterey Homes in Scottsdale, Arizona. This marked the inception of what would become a significant player in the homebuilding industry. Steve Hilton's leadership was pivotal, guiding the company for 35 years as Chairman and CEO.

In 1996, a pivotal moment arrived with a reverse merger involving Homeplex Mortgage Investments. This strategic move paved the way for Meritage Homes to become a publicly traded company, listed on the New York Stock Exchange. The company then changed its name to Meritage Homes Corporation in mid-1997, reflecting its evolution and expanded scope.

While specific details about the initial equity distribution among the founders and early investors are not extensively detailed in public records, the reverse merger was a transformative event. It shifted the company from private ownership to a public entity, opening doors for broader investment and growth. This transition was a key step in the company's journey.

Key Takeaways on Founders and Early Ownership

The founders, Steve Hilton and William 'Bill' Cleverly, laid the foundation for Meritage Homes. The reverse merger in 1996 was a crucial step in Meritage Homes's history, transforming the company into a publicly traded entity. The shift to public ownership allowed for wider investment and expansion.

• Steve Hilton served as Chairman and CEO for 35 years.
• The company was initially known as Monterey Homes.
• The reverse merger was completed with Homeplex Mortgage Investments.
• The company's headquarters is located in Scottsdale, Arizona.

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Meritage Homes Corporation, which began trading on the New York Stock Exchange (NYSE) in 1997 under the ticker symbol MTH, has seen its ownership structure evolve over time. As of June 5, 2025, the stock price was $65.24 per share. The company's journey from its founding to its current status as a publicly traded entity has significantly shaped its ownership landscape, with key events influencing the distribution of shares among various stakeholders.

Institutional investors currently hold a dominant position in Meritage Homes ownership. The company's strategic decisions and governance are heavily influenced by these major stakeholders. Recent actions, such as the two-for-one stock split completed on January 2, 2025, and share repurchase programs, reflect efforts to manage shareholder value and enhance market accessibility. Understanding the evolution of Meritage Homes ownership provides insights into its financial strategies and market positioning.

The largest individual shareholder is Steven J. Hilton, the co-founder and Executive Chairman, who owns 8.89 million shares, or 12.38% of the company. Meritage Homes has demonstrated its commitment to enhancing shareholder value through share repurchases. In 2024, the company repurchased 732,255 shares for $125.9 million and, as of December 31, 2024, approved an additional $250.0 million for its share repurchase program. As of March 31, 2025, $264 million remained available under this program. For further insights, consider exploring the Target Market of Meritage Homes.

Key Takeaways on Meritage Homes Ownership

Institutional investors are the primary owners of Meritage Homes, holding a significant majority of the shares.

• Steven J. Hilton is the largest individual shareholder.
• The company actively manages its shares through repurchases.
• The stock split in January 2025 aimed to improve accessibility.
• Meritage Homes' ownership structure reflects its market position and strategic direction.

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The current board of directors at Meritage Homes includes key figures such as Steven J. Hilton, the co-founder and Executive Chairman, and Phillippe Lord, the CEO. Other board members include Peter L. Ax (Lead Independent Director), Louis Caldera, Dennis Arriola, Deborah Henretta, Dana Bradford, Michael Odell, Geisha Williams, P. Kelly Mooney, Joseph Keough, and Erin Lantz. Steven J. Hilton brings over 35 years of leadership experience, while Phillippe Lord has been a board director since 2021.

This diverse board brings a wealth of experience to the table, overseeing the strategic direction and governance of the company. Their collective expertise helps guide the company's operations and decision-making processes.

Meritage Homes operates with a one-share-one-vote structure, ensuring that each share of common stock has one vote. The company's bylaws permit stockholders holding at least 50% of the votes to call a special meeting. Recent governance changes include the approval of conforming amendments to the company's bylaws on May 22, 2025, to reflect the declassification of the Board, which was approved by stockholders at the annual meeting on May 22, 2025. This move aligns with a trend supported by investors like Vanguard, who generally favor declassification for annual director performance evaluations. Understanding the Marketing Strategy of Meritage Homes can also provide insights into the company's overall approach.

Key Governance Points

Meritage Homes has a one-share-one-vote structure, ensuring equal voting power for each share.

• The Board of Directors approved conforming amendments to the company's bylaws on May 22, 2025, to reflect the declassification of the Board.
• Shareholders voted to declassify the board at the annual meeting on May 22, 2025.
• The company is adapting to investor preferences for annual director evaluations.

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In recent years, several key developments have shaped the ownership landscape of Meritage Homes. A noteworthy event was the two-for-one stock split, completed on January 2, 2025, designed to improve stock accessibility. This was announced in November 2024, with shareholders of record on December 31, 2024, receiving additional shares. This split aimed to make Meritage Homes stock more attractive to a wider range of investors.

The company has also been actively involved in share buybacks. In 2024, 732,255 shares were repurchased for $125.9 million, an increase from 437,882 shares bought back for $59.1 million in 2023. As of December 31, 2024, $309.1 million remained available under the share repurchase program, with an additional $250.0 million approved by the Board in the fourth quarter of 2024. In the first quarter of 2025, the company repurchased 605,316 shares for $45 million, with $264 million remaining available as of March 31, 2025. These actions indicate a commitment to returning value to shareholders. Additionally, Meritage Homes issued $500 million of 5.650% senior notes due 2035 in the first quarter of 2025.

Leadership and executive compensation also play a role in the ownership structure. Steven J. Hilton, co-founder and Executive Chairman, remains the largest individual shareholder. Adjustments to executive compensation, effective January 1, 2025, included increased base salaries and target equity compensation for top executives, excluding Steven J. Hilton. For instance, CEO Phillippe Lord's total yearly compensation in 2024 was $11.97 million, with a target cash incentive for 2025 of $3.25 million and $5.5 million in equity compensation. Understanding these dynamics is key to assessing the company's long-term prospects. For more context, you can read about the Brief History of Meritage Homes.

Share Repurchase Program

The company actively repurchases its shares, with $264 million remaining available as of March 31, 2025.

Executive Compensation

Executive compensation adjustments were made, effective January 1, 2025, with increased base salaries and target equity compensation.

Stock Split

A two-for-one stock split was completed on January 2, 2025, to improve stock accessibility and liquidity.

Board Declassification

The move to declassify the board, approved in May 2025, enhances director accountability through annual elections.

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