MJ Gleeson sacked its chief executive this morning after he came to blows with the board over pay.
Jolyon Harrison, who has been in the post since 2012, stepped down with immediate effect.
The board said it was “not possible to find a mutually acceptable basis for Mr Harrison to continue.”
The decision follows “extensive discussions with Mr Harrison regarding his remuneration and succession planning,” it said.
It spooked investors, sending shares down 11 per cent to 788p by around 9.30 this morning.
“While this is disappointing and surprising, as he was key to establishing and scaling up Gleeson’s business model, we note that the business is not as dependent on him as it once was,” said Charlie Campbell and Marcus Cole, analysts at Liberum.
The company has brought in ex-Keepmoat Homes chief executive James Thomson as interim boss.
While it searches for a chief executive, the firm will give a trading update early next month, and full-year results in September.
The board reaffirmed guidance.