Beazer Homes USA Inc. (NYSE:BZH) may face some opposition soon after CtW Investment Group - a large union affiliate - called for the head of CEO Ian McCarthy after a series of problems with the company. Shareholders are hoping that this type of change can help unlock value in the company and take it out of its current streak of bad luck and mismanagement.

"Taken together, the combination of improper practices, compliance failures and poor corporate governance detailed above constitute a stinging indictment of Beazer’s leadership in general and of Mr. McCarthy in particular," said CtW in a letter to the board. "By swiftly replacing Mr. McCarthy with a qualified CEO and naming an independent director to assume Mr. Beazer’s role as chairman, the board can begin to restore the credibility Beazer desperately needs."

Beazer's stock is down nearly 80% so far this year with cancellations reaching an astounding 68% last quarter. Clearly, there are issues that need to be addressed immediately with this company. CtW proposed that hte company (1) replace CEO McCarthy, (2) name an independent board chairman, and (3) establish a legal and regulatory compliance committee to prevent future problems.

Notably, the company failed to respond to the hedge fund's first letter in early September. However, the hedge fund is continuing to press on with its demands by making them public. Shares in the company were up over 10% on news of these new demands. If changes do take place, BZH could quickly become a stock to watch!

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