Toll Brothers, Inc. 8-K

What Happened Toll Brothers, Inc. filed an 8-K (Jan 7, 2026) reporting that on January 5, 2026 the Board appointed Karl K. Mistry to be Chief Executive Officer effective March 30, 2026; he is also expected to join the Board on or about that date. Current Chairman and CEO Douglas C. Yearley, Jr. will transition to Executive Chair and will continue to have a significant management role.

Key Details

• Karl K. Mistry (age 45) has been with Toll Brothers since 2004 and is currently Executive Vice President overseeing homebuilding operations in 15 states in the East.
• Mistry compensation: $1,000,000 base salary; targeted fiscal 2026 cash bonus of $2,250,000 (pro‑rated for time as EVP/CEO); annual equity award of $4,250,000 (pro‑rated for fiscal 2026), granted under the 2019 Omnibus Incentive Plan.
• Mistry will be eligible for the company’s executive severance plan, Supplemental Executive Retirement Plan, and a standard-form indemnification agreement. No related-party transactions or family relationships were reported.
• Douglas Yearley’s expected fiscal 2027 total compensation: $6,600,000 (salary $1,200,000; targeted cash incentive $1,800,000; long‑term equity $3,600,000). Certain elements of Yearley’s fiscal 2026 pay will be pro‑rated to reflect the role change.

Why It Matters This is a planned leadership transition at Toll Brothers: a long-tenured internal executive is taking over the CEO role while the incumbent moves to Executive Chair and remains involved in management. Investors should note the new CEO’s compensation levels and pro‑rations for 2026, which reflect standard incentive and equity participation; the filing does not indicate any unusual severance or related-party arrangements. The change may affect company strategy and investor expectations over time, but the filing itself is administrative and focuses on governance and pay terms rather than operational results.