Peng participated in a failed mutiny over pay but was pardoned. In August 1921, Peng was promoted to the rank of second lieutenant and became acting company commander several weeks later. Stationed in a village in Nanxian, Peng noticed that the poor were being mistreated by a local landlord, and he encouraged them to establish an "association to help the poor." When the local villagers hesitated, Peng ordered his soldiers to arrest the landlord and execute him. Peng was reprimanded for his actions but not demoted or reassigned. After that incident, Peng began to consider seriously leaving the service of his provincial warlord army. In February 1922, after applying for extended unpaid leave, Peng and several other officers traveled to Guangdong to seek employment in the army of the Kuomintang.