Howe hit the headlines this week when chairman Eddie Mitchell revealed the 32-year-old had turned down the opportunity to take over at League One rivals Southampton.
Saints are on the look-out for a new manager and Howe quickly emerged as a possible contender for the vacancy.
But Mitchell confirmed Howe had opted to remain with Cherries, who he has saved from relegation and led to promotion during his time at the helm.
And Pugh, who was handed his chance in the third tier by Howe when he was recruited from Hereford United in the summer, revealed his delight at the news and that he was a big fan of his new boss.
When asked about Howe, the cultured attacking midfielder told the Echo: I think he's a top-class manager.
He spends so much time on the training ground after sessions if you want to do extra bits and pieces.
I just think it's a great pleasure to work under him because he's done a fantastic job with the club.
He's shown his determination to bring the club forward.
He's one of the best managers I've worked under, without a shadow of a doubt.
I believe he can achieve great things at the club and I believe he will manage in the Premier League one day.
We're just lucky to have him here and we just want to push on and keep picking up positive results like we are doing.
You can tell all the lads love working under him and we're just playing for him, the club and for ourselves.
It's a great team spirit here and we all love it.
Howe's men will be bidding to continue their promising early-season form against Dagenham and Redbridge this afternoon (3pm).
Pugh, 23, is looking forward to the Dean Court clash, particularly as he has fond memories of facing John Still's men, having scored against them last term.
The Lancastrian is aiming to add to his tally of three goals so far this season after netting the equaliser in the 2-2 draw at Huddersfield last time out.
Pugh added: I scored against them last year so, hopefully, I can continue that form against them.
They're a very direct team and they will get the ball forward early and they won't be an easy team to play against.
But if we keep playing like we have done and, if we take our performance from Huddersfield into the game today, then I'm sure we'll have no problems.