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March 26, 2021 Dear Shareholder: It is my pleasure to invite you to attend our Annual Meeting of Shareholders to be held at | ||||||||
•election of | • • •any other matters that properly come before the meeting. | |||||||
MGIC Investment Corporation | ||||||||
Notice of 2021 Annual Meeting and Proxy Statement | ||||||||
2020 Annual Report to Shareholders | Your vote is important. Even if you plan to attend the meeting, we encourage you to vote as soon as possible. You may vote by telephone, online or by mail. Please read our Proxy Statement for more information about our meeting and the voting process. | |||||||
Chief Executive Officer |
IMPORTANT NOTICE REGARDING THE AVAILABILITY OF PROXY MATERIALS FOR THE ANNUAL MEETING OF SHAREHOLDERS TO BE HELD ON | ||||||||
Our Proxy Statement and |
By Order of the Board of Directors | |||||
YOUR VOTE IS PLEASE PROMPTLY VOTE VIA OR BY COMPLETING, SIGNING, DATING AND RETURNING YOUR PROXY CARD OR VOTING INSTRUCTION OUR PROXY STATEMENT AND 2020 ANNUAL REPORT TO SHAREHOLDERS ARE AVAILABLE AT HTTPS://MATERIALS.PROXYVOTE.COM/552848. |
Pension Benefits at | ||||||||
Reports | ||||||||
Item 3 – Ratification of Appointment of Independent Registered Public Accounting Firm | ||||||||
Glossary of Terms and Acronyms | ||||||||
Explanation and Reconciliation of Non-GAAP Financial Measures | ||||||||
Proposal | Voting Matter | More Information | Board Vote Recommendation | ||||||||
1 | Election of | FOR each Director Nominee | |||||||||
2 | Advisory Vote on Executive Compensation | FOR | |||||||||
3 | |||||||||||
Ratification of Independent Registered Public Accounting Firm | FOR |
New Insurance Written (NIW) (billions)(1) | Insurance in Force (IIF) (billions)(2) | Adjusted Net Operating Income per Diluted Share(3) | ||||||
(1) | |||||
(2) | Direct primary IIF (before the effects of reinsurance), which is an important driver of our future premiums. | ||||
(3) | This is a non-GAAP measure of performance. For a description of how we calculate this measure and for a reconciliation of this measure to its nearest comparable GAAP measure, see Appendix B to this Proxy Statement. |
Business | Results | |||||||
Capital Position - Manage and deploy capital | » | Paid $390 million of dividends of cash and investments from Continued to pay dividends to holders of our common stock, despite the COVID-19 pandemic. Returned approximately $120 million to shareholders by repurchasing 9.6 million shares of our stock, before we temporarily suspended our stock repurchase program as a result of the economic uncertainty caused by the COVID-19 pandemic. Issued $650 million aggregate principal amount of 5.25% Notes due in | ||||||
Prudently Grow Insurance in Force | » | Increased primary NIW from $63.4 billion in 2019 to $112.1 billion in 2020 and increased primary IIF by more than 10.9% year-over-year. The NIW is consistent with the Company's risk and return goals. Continued to transform our business processes and to enhance our data and analytics capabilities. | ||||||
Developing Co-Workers - | » |
Name | Age(1) | Director Since | Primary Occupation | Independent | Committee Memberships | ||
Daniel A. Arrigoni | 67 | 2013 | Former President and CEO of U.S. Bank Home Mortgage Corp. | ü | • Audit • Risk Management | ||
Cassandra C. Carr | 73 | 2013 | Consultant; Former Global Vice Chair of Talent at Hill+Knowlton Strategies | ü | • MDNG * • Risk Management | ||
C. Edward Chaplin | 61 | 2014 | Former President and CFO of MBIA Inc. | ü | • Risk Management • Securities Investment | ||
Curt S. Culver | 66 | 1999 | Chairman of the Board Former CEO of MGIC Investment Corp. | • Executive | |||
Timothy A. Holt ª | 65 | 2012 | Former SVP and Chief Investment Officer of Aetna, Inc. | ü | • Audit • Securities Investment (C) | ||
Kenneth M. Jastrow, II | 71 | 1994 | Lead Independent Director Corporate Director and Private Investor; Former Chairman & CEO of Temple-Inland Inc. | ü | • Executive • MDNG * (C) | ||
Michael E. Lehman ª | 67 | 2001 | Interim Vice Provost for Information Technology and Chief Information Officer (until August 1, 2018) and Special Advisor to the Chancellor of the University of Wisconsin; Former EVP and CFO of Sun Microsystems, Inc. | ü | • Audit (C) • MDNG * | ||
Melissa B. Lora ª | 55 | 2018 | President of Taco Bell International (retiring in Summer 2018) | ü | • Audit • Risk Management | ||
Gary A. Poliner | 65 | 2013 | Former President of The Northwestern Mutual Life Insurance Company | ü | • Audit • Risk Management (C) • Securities Investment | ||
Patrick Sinks | 61 | 2014 | CEO of MGIC Investment Corp. | • Executive (C) | |||
Mark M. Zandi | 59 | 2010 | Chief Economist of Moody's Analytics, Inc. | ü | • Risk Management | ||
ª | = | Audit Committee Financial Expert | |||||
* | = | Management Development, Nominating and Governance Committee | |||||
C | = | Committee Chair | |||||
(1) As of June 1, 2018 |
Name | Age(1) | Director Since | Primary Occupation | Independent | Committee Memberships | ||||||||||||||||||
Analisa M. Allen | 61 | 2020 | Former CIO of Data & Analytics and CIO for Home Lending Technology of JP Morgan Chase's consumer bank | ü | • Audit • Risk Management | ||||||||||||||||||
Daniel A. Arrigoni | 70 | 2013 | Former President and CEO of U.S. Bank Home Mortgage Corp. | ü | • Audit • Risk Management | ||||||||||||||||||
C. Edward Chaplin | 64 | 2014 | Corporate Director; Former President and CFO of MBIA Inc. | ü | • Risk Management • Securities Investment | ||||||||||||||||||
Curt S. Culver | 68 | 1999 | Chairman of the Board of MGIC; Former CEO of MGIC Investment Corp. | • Executive | |||||||||||||||||||
Jay C. Hartzell ª | 51 | 2019 | President of the University of Texas at Austin | ü | • Audit • Risk Management | ||||||||||||||||||
Timothy A. Holt | 67 | 2012 | Corporate Director; Former SVP and Chief Investment Officer of Aetna, Inc. | ü | • MDNG * • Securities Inv. (C) | ||||||||||||||||||
Jodeen A. Kozlak | 57 | 2018 | Founder and CEO of Kozlak Capital Partners, LLC; Former Global SVP of Human Resources of Alibaba Group | ü | • MDNG * • Securities Investment | ||||||||||||||||||
Michael E. Lehman ª | 70 | 2001 | Lead Independent Director of MGIC; Interim Chief Operating Officer of the Wisconsin School of Business; Former EVP and CFO of Sun Microsystems, Inc. | ü | • Audit • Executive • MDNG * (C) | ||||||||||||||||||
Melissa B. Lora ª | 58 | 2018 | Corporate Director; Former President of Taco Bell International | ü | • Audit • MDNG* | ||||||||||||||||||
Timothy J. Mattke | 45 | 2019 | CEO of MGIC Investment Corp. | • Executive (C) | |||||||||||||||||||
Gary A. Poliner | 67 | 2013 | Corporate Director; Former President of The Northwestern Mutual Life Insurance Company | ü | • Audit (C) • Risk Management • Securities Investment | ||||||||||||||||||
Sheryl L. Sculley ª | 68 | 2019 | Corporate Director; Former City Manager of the City of San Antonio, Texas | ü | • Audit • Securities Investment | ||||||||||||||||||
Mark M. Zandi | 61 | 2010 | Chief Economist of Moody's Analytics, Inc. | ü | • Risk Management (C) | ||||||||||||||||||
ª | = | Audit Committee Financial Expert | |||||||||||||||||||||
* | = | Management Development, Nominating and Governance Committee | |||||||||||||||||||||
C | = | Committee Chair | |||||||||||||||||||||
(1) | As of March 12, 2021 |
CEO 2020 Pay Mix (% of TDC) At-Risk Performance-Based Pay: 83.4% | Other NEOs' 2020 Pay Mix (% of TDC) Average At-Risk Performance-Based Pay: 79.1% | ||||
MGIC Investment Corporation P.O. Box 488 MGIC Plaza, 270 East Kilbourn Avenue Milwaukee, WI 53201 |
Name | Shares Beneficially Owned | Percent of Class | |||||||||
The Vanguard Group, Inc.(1) 100 Vanguard Boulevard, Malvern, PA 19355 | 34,220,006 | 10.1% | |||||||||
BlackRock, Inc.(2) 55 East 52nd Street, New York, NY 10055 | 30,368,321 | 9.0% | |||||||||
Wellington Management Group LLP(3) 280 Congress Street, Boston, MA 02210 | 27,899,145 | 8.2% | |||||||||
FMR LLC(4) 245 Summer Street, Boston, MA 02210 | 22,642,235 | 6.7% | |||||||||
The Goldman Sachs Group, Inc.(5) 200 West Street, New York, NY 10282 | 19,446,216 | 5.7% |
Name | Shares Beneficially Owned | Percent of Class | ||
The Vanguard Group, Inc.(1) 100 Vanguard Boulevard, Malvern, PA 19355 | 35,992,659 | 9.8% | ||
Wellington Management Group LLP(2) 280 Congress Street, Boston, MA 02210 | 27,855,477 | 7.6% | ||
BlackRock, Inc.(3) 55 East 52nd Street, New York, NY 10055 | 24,706,723 | 6.7% |
Name of Beneficial Owner | Common Stock Owned Directly(1) | Common Stock Owned Indirectly(2) | Restricted Stock and Common Stock Underlying RSUs(3) | Total Number of Shares Beneficially Owned | Director Deferred Stock Units / Additional Underlying Units | Total Shares Beneficially Owned Plus Underlying Units | Name of Beneficial Owner | Common Stock Owned Directly(1) | Common Stock Owned Indirectly(2) | Restricted Stock and Common Stock Underlying RSUs(3) | Total Number of Shares Beneficially Owned | Director Deferred Stock Units / Additional Underlying Units | Total Shares Beneficially Owned Plus Underlying Units | |||||||||||||||||||
Analisa M. Allen | Analisa M. Allen | — | — | — | — | 12,051(4) | 12,051 | |||||||||||||||||||||||||
Daniel A. Arrigoni | — | 20,000 | — | 20,000 | 6,325(4) | 26,325 | Daniel A. Arrigoni | — | 25,000 | — | 25,000 | 8,025(4) | 33,025 | |||||||||||||||||||
Cassandra C. Carr | 5,000 | — | — | 5,000 | 29,323(4) | 34,323 | ||||||||||||||||||||||||||
C. Edward Chaplin | 10,000 | — | — | 10,000 | 49,066(4) | 59,066 | C. Edward Chaplin | 10,000 | — | — | 10,000 | 52,376(4) | 62,376 | |||||||||||||||||||
Curt S. Culver | 1,177,005 | 11,504 | — | 1,188,509 | 6,325(4) | 1,194,834 | Curt S. Culver | 11,504 | 1,238,818 | — | 1,250,322 | 8,025(4) | 1,258,347 | |||||||||||||||||||
Jay C. Hartzell | Jay C. Hartzell | — | — | — | — | 17,482(4) | 17,482 | |||||||||||||||||||||||||
Timothy A. Holt | 20,000 | — | — | 20,000 | 64,672(4) | 84,672 | Timothy A. Holt | 20,000 | — | — | 20,000 | 85,009(4) | 105,009 | |||||||||||||||||||
Kenneth M. Jastrow, II | 1,146 | — | 31,552 | 32,698 | 36,461(4) | 69,159 | Kenneth M. Jastrow, II | 1,146 | — | 8,733 | 9,879 | 62,115(4) | 71,994 | |||||||||||||||||||
Jodeen A. Kozlak | Jodeen A. Kozlak | 5,000 | — | — | 5,000 | 21,808(4) | 26,808 | |||||||||||||||||||||||||
Michael E. Lehman | 19,939 | — | 3,050 | 22,989 | 7,706(4) | 30,695 | Michael E. Lehman | 34,939 | — | 3,050 | 37,989 | 9,459(4) | 47,448 | |||||||||||||||||||
Melissa B. Lora | — | — | — | — | 6,325(4) | 6,325 | Melissa B. Lora | — | — | — | — | 31,027(4) | 31,027 | |||||||||||||||||||
Gary A. Poliner | — | — | — | — | 102,677(4) | 102,677 | Gary A. Poliner | — | — | — | — | 133,446(4) | 133,446 | |||||||||||||||||||
Sheryl L. Sculley | Sheryl L. Sculley | — | — | — | — | 17,482(4) | 17,482 | |||||||||||||||||||||||||
Mark M. Zandi | — | — | — | — | 47,833(4) | 47,833 | Mark M. Zandi | — | — | — | — | 51,097(4) | 51,097 | |||||||||||||||||||
Patrick Sinks | 1,103,080 | 10,610 | — | 1,113,690 | 732,574(5) | 1,846,264 | ||||||||||||||||||||||||||
Timothy M. Mattke | 250,170 | 865 | — | 251,035 | 251,168(5) | 502,203 | Timothy M. Mattke | 382,616 | 910 | — | 383,526 | 783,011(5) | 1,166,537 | |||||||||||||||||||
Salvatore A. Miosi | Salvatore A. Miosi | 224,897 | 2,519 | — | 227,416 | 534,007(5) | 761,423 | |||||||||||||||||||||||||
Nathaniel H. Colson | Nathaniel H. Colson | 6,698 | — | — | 6,698 | 210,344(5) | 217,042 | |||||||||||||||||||||||||
James J. Hughes | — | 115,102 | 115,102 | 225,860(5) | 340,962 | James J. Hughes | — | 234,054 | — | 234,054 | 343,504(5) | 577,558 | ||||||||||||||||||||
Jeffrey H. Lane | 640,878 | — | — | 640,878 | 251,168(5) | 892,046 | ||||||||||||||||||||||||||
Stephen C. Mackey | 56,617 | — | 10,000 | 66,617 | 251,168(5) | 317,785 | ||||||||||||||||||||||||||
All Directors and Executive Officers as a Group (17 Persons) | 3,532,930 | 160,475 | 44,602 | 3,738,007(6) | 2,392,193 | 6,130,200 | ||||||||||||||||||||||||||
Paula C. Maggio | Paula C. Maggio | 7,424 | — | — | 7,424 | 312,672(5) | 320,096 | |||||||||||||||||||||||||
All Directors and Executive Officers as a Group (20 Persons) | All Directors and Executive Officers as a Group (20 Persons) | 759,947 | 1,501,301 | 11,783 | 2,273,031(6) | 3,002,244 | 5,275,275 |
(1) Includes shares for which investment power is shared as follows: all directors and executive officers as a group — 43,862. (2) Includes: (a) Shares held in our Profit Sharing and Savings Plan as follows: Mr. Mattke — 910; Mr. Miosi — 2,519; and all executive officers as a group — 3,429; (b) Shares held by a family trust affiliated with: Mr. Arrigoni — 25,000; Mr. Culver — 981,755; Mr. Hughes — 234,054; and all directors and executive officers as a group — 1,240,809; and (c) 257,063 shares held by a Foundation for which Mr. Culver has no pecuniary interest but shares voting and dispositive power. (3) Includes: (a) 3,050 shares |
Audit | Executive | Management Development, Nominating and Governance | Risk Management | Securities Investment | |
Daniel A. Arrigoni | ● | ● | |||
Cassandra C. Carr | ● | ● | |||
C. Edward Chaplin | ● | ● | |||
Curt S. Culver | ● | ||||
Timothy A. Holt | ● | C | |||
Kenneth M. Jastrow, II | ● | C | |||
Michael E. Lehman | C | ● | |||
Melissa B. Lora | ● | ● | |||
Gary A. Poliner | ● | C | ● | ||
Patrick Sinks | C | ||||
Mark M. Zandi | ● | ||||
2017 Meetings | 15 | 0 | 7 | 5 | 6 |
C = Committee Chair |
Skills and Experience | Relevance to MGIC | Board Composition | ||||||
Accounting | We operate in a complex financial and regulatory environment. | |||||||
Chief Executive Officer | Experience at the highest level of an organization provides expertise that will foster participation in the development and implementation of the Company's business strategies. | |||||||
Financial | Knowledge of finance or financial reporting and experience with debt and capital markets transactions is important to executing our business strategies. | |||||||
Human Resources | As a financial services firm, human capital represents an important asset. Knowledge of human resources matters is important to executing our business strategies. | |||||||
Insurance | Insurance industry experience provides understanding of our business and strategies. | |||||||
Investments | We manage a large and long-term investment portfolio to support our obligations to pay future claims of our policyholders. | |||||||
Public Company Executive Experience | As a complex, publicly-held company, practical insight into shareholder concerns and governance matters is important. | |||||||
Regulatory / Public Affairs | Our business requires compliance with a variety of federal, state and GSE requirements, and involves relationships with various government and non-government organizations. | |||||||
Housing Markets / Risk Management | A main component of our business involves taking and managing risk associated with the housing markets. | |||||||
Technology / Cyber | We continue to undergo a business process transformation involving upgrades to our technology and to manage our cybersecurity risks. |
Audit | Executive | Management Development, Nominating and Governance | Risk Management | Securities Investment | |||||||||||||
Analisa M. Allen | ● | ● | |||||||||||||||
Daniel A. Arrigoni | ● | ● | |||||||||||||||
C. Edward Chaplin | ● | ● | |||||||||||||||
Curt S. Culver | ● | ||||||||||||||||
Jay C. Hartzell | ● | ● | |||||||||||||||
Timothy A. Holt | ● | C | |||||||||||||||
Kenneth M. Jastrow, II(1) | |||||||||||||||||
Jodeen A. Kozlak | ● | ● | |||||||||||||||
Michael E. Lehman | ● | ● | C | ||||||||||||||
Melissa B. Lora | ● | ● | |||||||||||||||
Timothy J. Mattke | C | ||||||||||||||||
Gary A. Poliner | C | ● | ● | ||||||||||||||
Sheryl L. Sculley | ● | ● | |||||||||||||||
Mark M. Zandi | C | ||||||||||||||||
2020 Meetings | 14 | 0 | 5 | 5 | 11 | ||||||||||||
C = Chairman | |||||||||||||||||
(1) Mr. Jastrow is not standing for re-election at our 2021 Annual Meeting of Shareholders. |
ANALISA M. ALLEN Director Since: 2020 Age: 61 | Committees: Audit Committee; Risk Management Committee | |||||||
Analisa M. Allen is an information technology consultant with the Gerson Lehrman Group. She is the former Chief Information Officer of Data & Analytics (2017-2019) and the former Chief Information Officer for Home Lending Technology (2015-2017), in each case for the consumer bank at JP Morgan Chase & Co. Ms. Allen has also held several leadership positions with Goldman Sachs & Co., a firm she served for a total of 24 years, where she was responsible for business planning and technical strategy, including as Managing Director, Co-Head of Global Operations Technology (2008-2015) and Managing Director, Global Regulatory, Risk and Control Head (2006-2013). Ms. Allen brings to the Board extensive information technology and leadership experience, including in highly regulated industries. | ||||||||
DANIEL A. ARRIGONI Director Since:2013 Age: | Committees:Audit Committee; Risk Management Committee | |||||||
Daniel A. Arrigoni was President and Chief Executive Officer of U.S. Bank Home Mortgage Corp., one of the largest originators and servicers of home loans in the U.S., until his retirement in 2013. Prior to his retirement, Mr. Arrigoni also served as an Executive Vice President of U.S. Bank, N.A. Mr. Arrigoni led the mortgage company for U.S. Bank and its predecessor companies since 1996. Mr. Arrigoni has over 40 years of experience in the Mr. Arrigoni brings to the Board a broad understanding of the mortgage business and its regulatory environment, skill in assessing and managing credit risk, and significant finance experience, each gained from his many years of executive management in the | ||||||||
C. EDWARD CHAPLIN Director Since:2014 Age: | Committees:Risk Management Committee; Securities Investment Committee | |||||||
C. Edward Chaplin was President and Chief Financial Officer at MBIA Inc., a provider of financial guarantee insurance and the largest municipal bond-only insurer, from 2008 until 2016, and remained with MBIA as Executive Vice President until his January 1, 2017 retirement. He joined MBIA in 2006 as its Chief Financial Officer, after having served as a member of Mr. Chaplin brings to the Board a deep understanding of the insurance and real estate industries, management and leadership skills, and financial expertise. | ||||||||
CURT S. CULVER Chairman of the Board Director Since:1999 Age: | Committees:Executive Committee | |||||||
Curt S. Culver was our Chairman of the Board from 2005 until his retirement as our Chief Executive Officer in 2015. He Mr. Culver brings to the Board extensive knowledge of our business and operations and a long-term perspective on our strategy. | ||||||||
JAY C. HARTZELL Director Since: 2019 Age: 51 | Committees: Audit Committee; Risk Management Committee | |||||||
Jay C. Hartzell is President of the University of Texas at Austin. Prior to being named President of the University in 2020, he was Dean of its McCombs School of Business, a position he held since 2016. He joined the University of Texas in 2001 and held several key administrative roles at the McCombs School before being named Dean, including Senior Associate Dean for Academic Affairs, Chair of the Finance Department, and Executive Director of the School’s Real Estate Finance and Investment Center. Prior to joining the University of Texas, Dr. Hartzell taught at the Stern School of Business at New York University. As a senior university administrator and an experienced academic, Dr. Hartzell provides our Board with expertise on business organization, governance, real estate finance and corporate finance matters. | ||||||||
TIMOTHY A. HOLT Director Since:2012 Age: | Committees: | |||||||
Timothy A. Holt was an executive committee member and Senior Vice President and Chief Investment Officer of Aetna, Inc., a diversified health care benefits company, when he retired in 2008 after 30 years of service. From 2004 through 2007, he also served as Chief Enterprise Risk Officer of Aetna. Prior to being named Chief Investment Officer in 1997, Mr. Holt held various senior management positions with Aetna, including Chief Financial Officer of Aetna Retirement Services and Vice President, Finance and Treasurer of Aetna. Mr. Holt also serves as Mr. Holt brings to the Board investment expertise, skill in assessing and managing investment and credit risk, broad-based experience in a number of areas relevant to our business, including insurance, and senior executive experience gained at a major public insurance company. | ||||||||
JODEEN A. KOZLAK Director Since: 2018 Age: 57 | Committees: Management Development, Nominating & Governance Committee; Securities Investment Committee | |||||||
Jodeen A. Kozlak is the founder of Kozlak Capital Partners, LLC, a private consulting firm, and has served as its CEO since 2017. Ms. Kozlak previously served as the Global Senior Vice President of Human Resources of Alibaba Group, a multinational conglomerate (2016-2017). Ms. Kozlak also previously served as the Executive Vice President and Chief Human Resources Officer of Target Corporation, one of the largest retailers in the U.S. (2007-2016), and held other senior leadership roles in her 15-year career there. Prior to joining Target, Ms. Kozlak was a partner in a private law practice. Ms. Kozlak also serves on the Boards of Directors of C.H. Robinson Worldwide, Inc., KB Home and Leslie's Inc. Ms. Kozlak brings to the Board significant executive management experience. Through her service as Executive Vice President and Chief Human Resources Officer at a Fortune 100 company, Ms. Kozlak has developed significant knowledge and expertise in the area of human capital development and a deep understanding of executive compensation within a public company. | ||||||||
MICHAEL E. LEHMAN Director Since:2001 Age: | Committees:Audit | |||||||
Michael E. Lehman has served the University of Wisconsin in various capacities since March 2016, currently as Interim Chief Operating Officer of the Wisconsin School of Business, and previously as Special Advisor to the Chancellor, Interim Vice Provost for Information Technology, Mr. Lehman brings to the Board financial and accounting knowledge gained through his service as chief financial officer of a large, multinational public company; skills in addressing the range of financial issues facing a large company with complex operations; senior executive and operational experience; as well as technology and | ||||||||
MELISSA B. LORA Director Since:2018 Age: | Committees:Audit Committee; | |||||||
Melissa B. Lora Ms. Lora brings to the Board substantial executive management experience, including in financial and marketing | ||||||||
TIMOTHY J. MATTKE Director Since: 2019 Age: 45 | Committees: Executive Committee (Chair) | |||||||
Timothy J. Mattke has been our Chief Executive Officer since 2019. He served as our Executive Vice President and Chief Financial Officer from 2014 to 2019, and our Controller from 2009 to 2014. Before then, he held other positions within the Accounting and Finance Departments. Before joining the Company in 2006, Mr. Mattke had been with PricewaterhouseCoopers LLP. Mr. Mattke brings to the Board extensive knowledge of our industry, business and operations; financial acumen; a long-term perspective on our strategy; and the ability to lead our Company as the mortgage finance system and the mortgage insurance industry evolve. | ||||||||
GARY A. POLINER Director Since:2013 Age: | Committees:Risk Management Committee; Audit Committee (Chair); | |||||||
Gary A. Poliner was President of The Northwestern Mutual Life Insurance Company Mr. Poliner brings to the Board a breadth of executive management experience in the insurance business, including risk management, and financial and insurance regulatory expertise. | ||||||||
Director Since: Age: | Committees: | |||||||
MARK M. ZANDI Director Since: 2010 Age: | Committees: Risk Management Committee (Chair) | |||||||
Mark M. Zandi, since 2007, has been Chief Economist of Moody’s Analytics, Inc., where he directs economic research. Moody’s Analytics is a leading provider of economic research, data and analytical tools. It is a subsidiary of Moody’s Corporation that is separately managed from Moody’s Investors Service, the rating agency subsidiary of Moody’s Corporation. Dr. Zandi is a trusted adviser to policymakers and an influential source of economic analysis for businesses, journalists and the public, and he frequently testifies before Congress on economic matters. Dr. Zandi, with his economics and residential real estate industry expertise, brings to the Board a deep understanding of the economic factors that shape our industry. In addition, Dr. Zandi has expertise in the legislative and regulatory processes relevant to our business. |
Compensation Component | Compensation | |||||||
Annual Retainer – Chairman of the Board | $250,000, which may be elected to be deferred and either converted into cash-settled share units or credited to a bookkeeping account to which interest is credited. | |||||||
Annual Retainer – Non-Chairman Directors | $ | |||||||
Annual Retainer – Equity | $100,000 in cash-settled RSUs that vest immediately but are not settled for approximately one year. Such settlement may be deferred at the option of the director. | |||||||
Annual Retainer – Lead Director | $25,000 | |||||||
Annual Retainer – Committee Chair | $25,000 for the Audit Committee $25,000 for the Management Development, Nominating and Governance Committee $15,000 for other committees(1) | |||||||
Annual Retainer – Committee Member | $15,000 for Audit Committee $5,000 for other committees(1) | |||||||
Meeting Fees (after 5th meeting)(2) | $ $ | |||||||
Stock Ownership Guidelines(3) | Ownership of 25,000 shares of Common Stock, including deferred share units that have vested or are scheduled to vest within one year. Directors are expected to meet the guideline within five years of joining the Board. | |||||||
Expense Reimbursement | Subject to certain limits, we reimburse directors, and for meetings not held on our premises, their spouses, for travel, lodging and related expenses incurred in connection with attending Board and Committee meetings. | |||||||
Directors & Officers Insurance | We pay premiums for D&O liability insurance under which the directors are insureds. |
(1) Excludes the Executive Committee. Other than the Executive Committee, directors who are members of management do not serve on any committees but may attend committee meetings. |
Name | Fees Earned or Paid in Cash ($)(1) | Total Stock Awards ($)(2) | Total ($) | |||||||||||||||||
Analisa M. Allen(3) | 42,500 | 25,600 | 68,100 | |||||||||||||||||
Daniel A. Arrigoni | 202,000 | 100,000 | 302,000 | |||||||||||||||||
Cassandra C. Carr(4) | 80,000 | 100,000 | 180,000 | |||||||||||||||||
C. Edward Chaplin | 177,000 | 100,000 | 277,000 | |||||||||||||||||
Curt S. Culver | 255,000 | 100,000 | 355,000 | |||||||||||||||||
Jay C. Hartzell | 202,000 | 100,000 | 302,000 | |||||||||||||||||
Timothy A. Holt | 220,500 | 100,000 | 320,500 | |||||||||||||||||
Kenneth M. Jastrow, II | 192,500 | 100,000 | 292,500 | |||||||||||||||||
Jodeen A. Kozlak | 174,000 | 100,000 | 274,000 | |||||||||||||||||
Michael E. Lehman | 232,000 | 100,000 | 332,000 | |||||||||||||||||
Melissa B. Lora | 202,000 | 100,000 | 302,000 | |||||||||||||||||
Gary A. Poliner | 222,500 | 100,000 | 322,500 | |||||||||||||||||
Sheryl L. Sculley | 208,000 | 100,000 | 308,000 | |||||||||||||||||
Mark M. Zandi | 165,000 | 100,000 | 265,000 |
Name | Fees Earned or Paid in Cash ($)(1) | Total Stock Awards ($)(2) | Total ($) | |||
Daniel A. Arrigoni | 165,000 | 100,000 | 265,000 | |||
Cassandra C. Carr | 141,000 | 100,000 | 241,000 | |||
C. Edward Chaplin | 139,000 | 100,000 | 239,000 | |||
Curt S. Culver | 250,000 | 100,000 | 350,000 | |||
Timothy A. Holt | 179,000 | 100,000 | 279,000 | |||
Kenneth M. Jastrow, II | 179,000 | 100,000 | 279,000 | |||
Michael E. Lehman | 181,000 | 100,000 | 281,000 | |||
Gary A. Poliner | 186,000 | 100,000 | 286,000 | |||
Mark M. Zandi | 130,000 | 100,000 | 230,000 |
APPROVAL OF THE COMPENSATION OF OUR NEOs. SIGNED PROXY CARDS AND VOTING INSTRUCTION FORMS WILL BE VOTED FOR THE APPROVAL OF THE EXECUTIVE COMPENSATION UNLESS A SHAREHOLDER GIVES OTHER INSTRUCTIONS ON THE PROXY CARD OR VOTING INSTRUCTION FORM. |
Name | Title | ||||
Timothy J. Mattke | Chief Executive Officer | ||||
Salvatore A. Miosi | President and Chief Operating Officer | ||||
Nathaniel H. Colson | Executive Vice President and Chief Financial Officer | ||||
James J. Hughes | Executive Vice President – Sales and Business Development | ||||
Paula C. Maggio | Executive Vice President, General Counsel and Secretary |
• | Our GAAP book value per share grew by approximately 12% in 2020. Growth in adjusted book value per share is used to determine vesting of our long-term equity awards.(1) | |||||||
• | New Insurance Written (NIW) was $112.2 billion in 2020, up more than 76% from 2019 ($63.4 billion), and was one of the financial performance goals that determined payouts under our 2020 bonus program. Aided in part by our NIW, our book of direct primary insurance in force, an important driver of our future revenue, grew by more than 10% in 2020. | |||||||
• | Adjusted net operating income per diluted share for | |||||||
• |
(1) | |||||
(2) |
For a reconciliation of these non-GAAP measures to their nearest comparable GAAP measures, see Appendix B. | |||||
(2) | For purposes of our 2020 bonus program, ROE is calculated as adjusted net operating income, divided by beginning shareholders' equity, excluding accumulated other comprehensive income (loss). |
● | No Adjustment to Performance Goals as a Result of COVID-19. Our 2020 results described above are reflected in the 2020 bonuses earned by our NEOs and discussed below. At the outset of 2020, the Committee approved performance goals for the 2020 bonus plan and long-term equity awards that reflected the favorable conditions being experienced in the mortgage insurance industry. Within this context, the Committee approved target performance goals that it considered challenging yet achievable. In establishing these goals, the Committee focused on setting goals that would drive an appropriate pay-for-performance outcome in the then-current business environment. Despite the operational and financial challenges caused by the COVID-19 pandemic, the Committee determined that the performance goals established prior to the onset of the pandemic for the 2020 bonus plan and long-term equity awards should not be modified or adjusted. | |||||||||||||
● | Annual Bonus. Our NEOs' | |||||||||||||
The following two financial performance goals had a total weight of 75% in determining the bonuses: | ||||||||||||||
■ | Return on Equity (described above) had a weight of 45%. Full credit under the bonus calculation required a 21% ROE. | |||||||||||||
■ | New Insurance Written had a weight of 30%. NIW received credit under the bonus calculation only if its expected risk-adjusted return on capital exceeded the Company's hurdle rate. | |||||||||||||
As | ||||||||||||||
○ | Three business performance objectives, discussed below under "Components of our |
● | Long-Term Equity Awards. Our | ||||||||||||||
○ | Promote a long-term focus because cliff vesting occurs only after three years for the CEO, President and COO, and all EVPs. | ||||||||||||||
○ | Are aligned with shareholder interests because the ultimate value of any shares that vest will depend on our total shareholder return performance over the vesting period. | ||||||||||||||
○ | |||||||||||||||
● | ||||||||||||
Stock Ownership Guidelines | è | Our stock ownership guidelines require our CEO to own Company stock equal in value to at least six times his base salary, and require our other NEOs to own Company stock equal in value to at least three times their base salaries. See "Other Aspects of our Executive Compensation Program" below for more information about the guidelines. | ||||||
Post-Vesting Stock Holding Requirements | è | Our NEOs and other executive officers are required to hold, for one year after vesting, the lower of 25% of shares that vest under equity awards and 50% of the shares that were received by the officer after taking account of shares withheld to cover taxes. Apart from what is required, we have had a culture of stock retention by senior executives. Excluding shares withheld from equity awards for income tax withholding, and a rebalancing of shares held through one of our NEO's Profit Sharing and Savings Plan accounts, none of our current NEOs has sold our stock while serving as an NEO. |
No Hedging, Pledging or 10b5-1 Plans | è | Our policies prohibit directors, NEOs, other officers and certain employees from entering into hedging transactions referencing the Company’s equity securities, holding Company securities in a margin account, or pledging Company securities as collateral for a loan. They also prohibit the use by those individuals of plans created pursuant to Rule 10b5-1 of the Securities Exchange Act which may otherwise have allowed such persons to sell our stock while in possession of material non-public information about us. For more information, see "Other Aspects of our Executive Compensation Program – Hedging, Pledging and 10b5-1 Plan Prohibitions" below. | ||||||
High Percentage of Performance-Based Compensation | è | 83.4% of our CEO's 2020 TDC was tied to achievement of pre‑set performance goals. On average, 79.1% of our other NEOs' 2020 TDC was tied to achievement of such goals. | ||||||
Limited Perquisites | è | Our perquisites are very modest, ranging between approximately $800 and $6,000 in 2020 for our NEOs. | ||||||
Effective Use of Equity Compensation with Low Burn Rate and Dilution | è | The total equity awards granted to all participants under our 2015 and 2020 Omnibus Incentive Plans in 2020 represented approximately 0.5% of our outstanding shares as of December 31, 2019. The Company's dilution from outstanding awards was in the 11th percentile among all companies in our 2021 Benchmarking Peer Group (calculated as outstanding equity awards on December 31, 2019, as a percentage of fully diluted total shares outstanding). Based on a “burn rate” methodology that uses the average of the total awards granted (after applying a multiple of 1.5 for RSUs versus options) and the weighted average number of shares outstanding during each of the last three completed years, our three-year average annual “burn rate” for 2018-2020 was approximately 0.76%. | ||||||
Limited Change in Control Benefits | è | “Double trigger” is generally required for any benefits to be paid. Equity awards may vest upon a change in control only if the Committee determines that the awards will not be assumed or replaced. Cash severance does not exceed 2 times base salary plus bonus plus retirement plan accrual. There is no excise tax gross-up provision. | ||||||
Employment Agreements | è | None; we only provide the limited provisions referred to above that are effective after a change in control. | ||||||
“Clawback” Policy | è | Our “clawback” policy applies to cash incentive compensation as well as equity award compensation received by our NEOs and other executive officers. | ||||||
Compensation Consultant | è | The Compensation Consultant is retained by the Committee and performs no services for the Company, other than the consulting services to the Committee regarding executive compensation and non-employee director compensation. | ||||||
Compensation Risk Evaluation | è | Annually, the Committee reviews an executive compensation risk evaluation designed to ensure that our compensation programs do not motivate excessive risk-taking and are not reasonably likely to have a material adverse effect on the Company. |
Omnibus Incentive Plan | è | Our 2015 Omnibus Incentive Plan and our 2020 Omnibus Incentive Plan, each of which were approved by shareholders, contain the following provisions: •No granting of stock options with an exercise price less than the fair market value of the Company’s common stock on the date of grant; •No re-pricing (reduction in exercise price) of stock options and no exchange of underwater stock options for another award or for cash, without shareholder approval; •No inclusion of reload provisions in any stock option grant; •No payment of dividends on performance-vested RSUs before they are vested; •No payment of dividends on time-vested RSUs before they are vested (2020 Plan only); •No single trigger vesting of awards upon a change in control in which the awards are assumed or replaced; •No recycling of shares withheld for tax purposes upon vesting; and •No Committee discretion to accelerate vesting of awards, except under certain limited instances like death, disability and retirement. |
MGIC Peer Group | Mortgage Insurer - Direct Competitor(1) | Industry in which we Compete for Talent | Chose us as a Peer | Business | |||||||||||||||||||
Ambac Financial Group, Inc. | X | X | X | Financial Guaranty Insurer | |||||||||||||||||||
X | X | X | Financial Guaranty Insurer | ||||||||||||||||||||
Arch Capital Group Ltd. | X | X | X | Includes Mortgage Insurer | |||||||||||||||||||
Assured Guaranty Ltd. | X | X | X | Financial Guaranty Insurer | |||||||||||||||||||
Essent Group Ltd. | X | X | X | X | Mortgage Insurer | ||||||||||||||||||
Fidelity National Financial Inc. | X | X | Title Ins & Other R.E. Services | ||||||||||||||||||||
First American Fin'l Corp. | X | X | Title Ins & Other R.E. Services | ||||||||||||||||||||
Flagstar Bancorp Inc. | X | X | Mortgage Orig & Svg; Banking | ||||||||||||||||||||
Genworth Financial Inc. | X | X | X | X | Includes Mortgage Insurer | ||||||||||||||||||
NMI Holdings Inc. | X | X | X | X | Mortgage Insurer | ||||||||||||||||||
Ocwen Financial Corp. | X | X | X | Mortgage Svg & Lending | |||||||||||||||||||
PennyMac Fin'l Services Inc. | X | X | X | Mortgage Svg & Lending | |||||||||||||||||||
X | X | X | X | Mortgage | |||||||||||||||||||
Stewart Info. Services Corp. | X | X | X | Title Ins & | |||||||||||||||||||
Walker and Dunlop, Inc. | X | X | Real Estate Services & Finance |
= 2021 Benchmarking Peer Group | |||||||||||
MGIC Percentile Rank Versus Benchmarking Peer Group | ||||||||
12/31/ | 62nd | |||||||
37th | ||||||||
CEO TDC(1) | ||||||||
CEO 2020 Pay Mix (% of TDC) At-Risk Performance-Based Pay: 83.4% | Other NEOs' 2020 Pay Mix (% of TDC) Average At-Risk Performance-Based Pay: 79.1% | ||||
Base Salaries | ||||||||||||||
2019 | % Increase | |||||||||||||
Executive | Former Role | Current Role | 2020 | 2020 vs YE 2019 | ||||||||||
Timothy J. Mattke | $563,300 | $775,000 | $800,000 | 3.2% | ||||||||||
Salvatore A. Miosi | $414,400 | $620,000 | $639,200 | 3.1% | ||||||||||
Nathaniel H. Colson | $160,000 | $275,000 | $350,000 | 27.3% | ||||||||||
James J. Hughes | n/a | $425,000 | $438,200 | 3.1% | ||||||||||
Paula C. Maggio | n/a | $412,400 | $425,200 | 3.1% |
Maximum Bonus Opportunity (Multiple of Base Salary) | ||||||||
Executive | Year-End 2019 | 2020 | ||||||
Timothy J. Mattke | 3.00 | 3.00 | ||||||
Salvatore A. Miosi | 2.75 | 2.75 | ||||||
Nathaniel H. Colson | 1.80 | 2.25 | ||||||
James J. Hughes | 2.25 | 2.25 | ||||||
Paula C. Maggio | 1.80 | 2.25 |
CEO Maximum Bonus Opportunity (Multiple of Base Salary) | |||||||||||
Benchmarking Peer Group (source: 2020 Proxy Statements) | |||||||||||
MGIC | 25th percentile | Median | 75th percentile | ||||||||
3.00 | 2.66 | 3.15 | 3.56 |
2016 Peer Group | ||||
MGIC | 25th percentile | Median | 75th percentile | |
Bonus Opportunity(1) (% of Base Salary) | 300% | 240% | 306% | 438% |
2020 Bonus Percentage | |||||||||||||||||||||||
Maximum Possible Score (Weight) | Weighted Score | ||||||||||||||||||||||
2020 Performance Levels | Actual 2020 | ||||||||||||||||||||||
Threshold | Target | Maximum | Score | ||||||||||||||||||||
Financial Performance Goals: | |||||||||||||||||||||||
Return on Equity | 10.0% | 13.5% | 21.0% | 10.8% | 60 | 6.9 | |||||||||||||||||
New Insurance Written (billions) | $42.0 | $56.0 | $64.0 | $113.8 | 40 | 40.0 | |||||||||||||||||
Total | 100 | % | 46.9 | ||||||||||||||||||||
Times: Total Weight of Financial Performance Goals | X 75% | 35.1 | % | ||||||||||||||||||||
Business Objectives: | |||||||||||||||||||||||
Capital Position | For a discussion of performance against these business objectives, see "Performance Against Business Objectives" | ||||||||||||||||||||||
Preserve & Expand Role of MI in Housing Policy | |||||||||||||||||||||||
Develop Co-Workers | |||||||||||||||||||||||
Total | 100 | % | 100.0 | ||||||||||||||||||||
Times: Total Weight of Business Objectives | X 25% | 25.0 | % | ||||||||||||||||||||
2020 Bonus Percentage | 60.1 | % |
Calculation of 2017 Preliminary Bonus Percentage | Maximum | |||||||||||||
Possible | ||||||||||||||
2017 Performance Levels | Actual | Score | Weighted | |||||||||||
Threshold | Target | Maximum | 2017 | (Weight) | Score | Score | ||||||||
Financial Performance Goals: | ||||||||||||||
Diluted EPS, before effects of tax law changes | $0.43 | $0.86 | $1.08 | $1.28 | 30 | % | 30.0 | |||||||
Return on Equity, before effects of tax law changes | 6.0 | % | 12.4 | % | 15.0 | % | 19.2 | % | 25 | 25.0 | ||||
Flow New Insurance Written (billions) | $40.0 | $48.0 | $56.0 | $49.1 | 15 | 8.5 | ||||||||
Expense Ratio | 20.4 | % | 17.4 | % | 15.0 | % | 16.0 | % | 15 | 11.9 | ||||
Loss Ratio | 6.2 | % | 3.1 | % | 2.1 | % | 4.5 | % | 15 | 4.1 | ||||
Total | 100 | % | 79.5 | |||||||||||
Times: Total Weight of Financial Performance Goals | X 75% | 59.6 | % | |||||||||||
Business Objectives: | ||||||||||||||
Capital Position | For a discussion of performance against these business objectives, see "Performance Against Business Objectives" below | 20 | % | 20.0 | ||||||||||
Grow Insurance in Force | 20 | 20.0 | ||||||||||||
Manage Role of MI in Housing Policy | 20 | 18.0 | ||||||||||||
Pursue Business Opportunities | 20 | 10.0 | ||||||||||||
Develop Co-Workers | 20 | 20.0 | ||||||||||||
Total | 100 | % | 88.0 | |||||||||||
Times: Total Weight of Business Objectives | X 25% | 22.0 | % | |||||||||||
2017 Preliminary Bonus Percentage | 81.6 | % |
2015 | 2016 | 2017 | |
CEO Bonus Received as a Percentage of Maximum Possible Bonus | 92% | 89% | 81% |
Business Objective | Results | |||||||
Capital Position - Manage and deploy capital | » | Paid $390 million of dividends of cash and investments from Continued to pay dividends to holders of our common stock, despite the COVID-19 pandemic. Returned approximately $120 million to shareholders by repurchasing 9.6 million shares of our stock, before we temporarily suspended our stock repurchase program as a result of the economic uncertainty caused by the COVID-19 pandemic. Issued $650 million aggregate principal amount of 5.25% Notes due in | ||||||
» | Positioned co-workers for success, even after seamless transition of 90%+ of our workforce to a remote work environment, in | |||||||
» | ||||||||
2016 | 2017 Performance Levels | |
Actual | Target | Maximum |
$0.86 | $0.86 | $1.08 |
ROE Performance Levels for Company's Bonus Plan Compared to Benchmarks | |||||
Company's Threshold ROE (for no bonus payout)(1) | 10.0 | % | |||
Company's Target ROE (for 50% bonus payout)(1) | 13.5 | % | |||
Company's Maximum ROE (for 100% bonus payout)(1) | 21.0 | % | |||
Average 2019 ROE of Company's Benchmarking Peers(2) | 6.9 | % |
2016 | 2017 Performance Levels | |
Actual | Target | Maximum |
15.3% | 12.4% | 15.0% |
MGIC 2020 NIW Performance Levels (billions) | ||||||||
Threshold (for no bonus payout) | Target (for 50% bonus payout) | Maximum (for 100% bonus payout) | ||||||
$42 | $56 | $64 |
2016 | 2017 Performance Levels | |
Actual | Target | Maximum |
$47.9 | $48.0 | $56.0 |
2016 | 2017 Performance Levels | |
Actual | Target | Maximum |
15.3% | 17.4% | 15.0% |
2016 | 2017 Performance Levels | |
Actual | Target | Maximum |
3.1% | 3.1% | 2.1% |
MGIC Historical NIW (billions) | |||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | Average | ||||||||||||
$43 | $48 | $49 | $51 | $63 | $51 |
MGIC's CEO Long-Term Equity Awards - Percentile Rank Among our Benchmarking Peers | ||||||||||||||
Target # of RSUs Granted(1) | Grant Date Value | MGIC Grant Date Stock Price | MGIC Percentile Rank | |||||||||||
2018 Long-Term Equity Awards - Former CEO | 264,880 | $4,187,753 | $15.81 | 57th | ||||||||||
2019 Long-Term Equity Awards - Former CEO | 287,000 | $3,375,120 | $11.76 | 35th | ||||||||||
2019 Long-Term Equity Awards - Current CEO | 173,400 | $2,144,934 | $12.37(2) | 10th | ||||||||||
2020 Long-Term Equity Awards - Current CEO | 196,560 | $2,686,975 | $13.67 | 19th(3) |
Target # of Shares Granted | Grant Date Value | MGIC Grant Date Stock Price | MGIC Percentile Rank | |
2016 Long-Term Equity Awards | 294,000 | $1,664,040 | $5.66 | 30th |
2017 Long-Term Equity Awards | 243,320 | $2,532,961 | $10.41 | 44th |
2018 Long-Term Equity Awards (2017 awards for peers) | 264,880 | $4,187,753 | $15.81 | 60th |
3-year Cumulative Goal | 2017 Actual Growth |
$3.56 | $1.34 |
3-year Cumulative Goal | 2016 Actual Growth | 2016 Vesting % | 2017 Actual Growth | 2017 Vesting % |
$3.49 | $0.94 | 26.9% | $1.44 | 39.8% |
3-year Cumulative Goal | 2015 Actual Growth | 2015 Vesting % | 2016 Actual Growth | 2016 Vesting % | 2017 Actual Growth | 2017 Vesting % |
$3.39 | $1.21 | 33.3% | $1.40 | 33.4% | $2.05 | 33.3% |
Growth in Adjusted Book Value per Share for 2020, 2019 and 2018 Cliff BV Awards | |||||||||||||||||
3-year Cumulative Goal | 2018-2020 Actual Growth | 2019-2020 Actual Growth | 2020 Actual Growth | Vesting % | |||||||||||||
2020 Equity Awards | $7.04 | $1.08 | |||||||||||||||
2019 Equity Awards | $6.02 | $3.25 | |||||||||||||||
2018 Equity Awards | $4.98 | $4.92 | 99% |
Guideline (value of shares) | Actual Ownership (value at 12/31/20) | Actual Ownership as a Multiple of Base Salary | |||||||||
CEO | $4,800,000 | $5,428,676 | 6.8 | ||||||||
Total Other Current NEOs | $5,557,800 | $7,306,007 | 3.9 |
Guideline (value of shares) | Actual Ownership (value at 12/31/17) | Actual Ownership as a Multiple of Base Salary | |
CEO | $5,100,000 | $17,125,632 | 20.1 x |
Total Other NEOs | $6,650,700 | $16,511,889 | 7.4 x |
Name and Principal Position | Year | Salary ($) | Stock Awards(1) ($) | Non-Equity Incentive Plan Compensation(2) ($) | Change in Pension Value and Nonqualified Deferred Compensation Earnings(3) ($) | All Other Compensation(4) ($) | Total ($) | ||||||||||||||||
Timothy Mattke(5) | 2020 | 824,039 | 2,686,975 | 1,442,400 | 538,355 | 25,400 | 5,517,169 | ||||||||||||||||
Chief Executive | 2019 | 645,873 | 2,144,934 | 1,474,000 | 504,486 | 24,950 | 4,794,243 | ||||||||||||||||
Officer | 2018 | 542,119 | 1,435,801 | 1,106,000 | 54,457 | 15,100 | 3,153,477 | ||||||||||||||||
Salvatore Miosi(5) | 2020 | 658,616 | 1,688,956 | 1,056,400 | 529,650 | 25,400 | 3,959,022 | ||||||||||||||||
President and | 2019 | 495,593 | 1,947,384 | 1,082,500 | 507,286 | 24,950 | 4,057,713 | ||||||||||||||||
Chief Operating Officer | 2018 | 398,550 | 1,435,801 | 813,000 | 84,115 | 15,100 | 2,746,566 | ||||||||||||||||
Nathaniel Colson(5), (6) | 2020 | 343,269 | 921,249 | 473,300 | 21,875 | 23,853 | 1,783,546 | ||||||||||||||||
EVP and Chief | 2019 | 206,180 | 374,593 | 223,100 | 14,822 | 8,808 | 827,503 | ||||||||||||||||
Financial Officer | |||||||||||||||||||||||
James Hughes(7) | 2020 | 451,500 | 921,249 | 592,600 | 516,999 | 25,400 | 2,507,748 | ||||||||||||||||
EVP – Sales & | 2019 | 421,500 | 1,651,059 | 825,200 | 558,689 | 24,950 | 3,481,398 | ||||||||||||||||
Bus. Development | 2018 | 408,769 | 1,435,801 | 834,000 | 126,953 | 15,100 | 2,820,623 | ||||||||||||||||
Paula Maggio(6) | 2020 | 438,108 | 921,249 | 575,000 | 43,129 | 25,400 | 2,002,886 | ||||||||||||||||
EVP and | 2019 | 409,062 | 1,157,184 | 640,600 | 39,438 | 24,950 | 2,271,234 | ||||||||||||||||
General Counsel |
Name | 2020 | 2019 | 2018 | |||||||||||
Timothy Mattke | $ | 4,306,050 | $ | 2,398,950 | $ | 1,669,536 | ||||||||
Salvatore Miosi | 2,706,660 | 2,201,400 | 1,669,536 | |||||||||||
Nathaniel Colson | 1,476,360 | 388,056 | See Note (6) | |||||||||||
James Hughes | 1,476,360 | 1,905,075 | 1,669,536 | |||||||||||
Paula Maggio | 1,476,360 | 1,411,200 | See Note (6) |
Name and Principal Position | Year | Salary ($) | Stock Awards(1) ($) | Non-Equity Incentive Plan Compensation(2) ($) | Change in Pension Value and Nonqualified Deferred Compensation Earnings(3) ($) | All Other Compensation(4) ($) | Total ($) | |||||
Patrick Sinks(5) | 2017 | 843,000 | 2,532,961 | 2,065,500 | 1,577,483 | 14,850 | 7,033,794 | |||||
President and Chief | 2016 | 818,462 | 1,664,040 | 2,200,000 | 1,100,922 | 14,850 | 5,798,274 | |||||
Executive Officer | 2015 | 769,331 | 3,143,000 | 2,200,000 | 455,612 | 14,600 | 6,582,543 | |||||
Timothy Mattke | 2017 | 526,327 | 868,444 | 966,800 | 396,358 | 14,850 | 2,772,779 | |||||
Executive Vice | 2016 | 511,539 | 570,528 | 1,093,900 | 246,002 | 14,850 | 2,436,819 | |||||
President and | 2015 | 464,231 | 1,077,600 | 1,096,900 | 101,070 | 14,600 | 2,754,401 | |||||
Chief Financial Officer | ||||||||||||
James Hughes(6) | 2017 | 365,081 | 868,444 | 729,000 | 469,507 | 14,850 | 2,446,882 | |||||
Executive Vice | 2016 | 268,477 | 219,155 | 460,000 | 289,428 | 16,128 | 1,253,188 | |||||
President - Sales & | 2015 | 257,381 | 395,120 | 448,700 | 88,843 | 46,139 | 1,236,183 | |||||
Bus. Development | ||||||||||||
Jeffrey Lane | 2017 | 831,085 | 868,444 | 997,800 | 731,088 | 14,850 | 3,443,267 | |||||
Executive Vice | 2016 | 815,385 | 570,528 | 1,128,000 | 455,896 | 14,850 | 2,984,659 | |||||
President and | 2015 | 797,600 | 1,077,600 | 1,129,800 | 238,920 | 14,600 | 3,258,520 | |||||
General Counsel | ||||||||||||
Stephen Mackey(6) | 2017 | 447,373 | 868,444 | 801,500 | 52,884 | 24,050 | 2,194,251 | |||||
Executive Vice | 2016 | 434,846 | 570,528 | 837,000 | 30,094 | 10,600 | 1,883,068 | |||||
President and Chief | ||||||||||||
Risk Officer |
Name | 2017 | 2016 | 2015 | |||||||
Patrick Sinks | $ | 3,206,280 | $ | 1,981,000 | $ | 3,143,000 | ||||
Timothy Mattke | 1,099,296 | 679,200 | 1,077,600 | |||||||
James Hughes | 1,099,296 | 249,040 | 395,120 | |||||||
Jeffrey Lane | 1,099,296 | 679,200 | 1,077,600 | |||||||
Stephen Mackey | 1,099,296 | 679,200 | See Note(6) |
(3) The Company does not maintain a non-qualified deferred compensation plan for its employees. The amounts shown in this column reflect, if positive, the sum of (a) the aggregate change in present value of accumulated pension benefits during the year pursuant to our Pension Plan and our Supplemental Executive Retirement Plan (SERP) when retirement benefits are also provided under the SERP, and (b) distributions the named executive officer received from our SERP during the year. |
2020 | 2019 | 2018 | |||||||||||||||||||||
Name | Change in Actuarial Assumptions | Change Due to Other Factors | Change in Actuarial Assumptions | Change Due to Other Factors | Change in Actuarial Assumptions | Change Due to Other Factors | |||||||||||||||||
Timothy Mattke | $ | 307,386 | $ | 230,969 | $ | 336,693 | $ | 167,793 | $ | (219,652) | $ | 274,109 | |||||||||||
Salvatore Miosi | 258,515 | 271,135 | 297,162 | 210,124 | (208,703) | 292,818 | |||||||||||||||||
Nathaniel Colson | (13) | 21,888 | 6,503 | 8,319 | See Note (6) | See Note (6) | |||||||||||||||||
James Hughes | 273,634 | 243,365 | 318,594 | 240,095 | (237,244) | 364,197 | |||||||||||||||||
Paula Maggio | 74 | 43,055 | 4,607 | 34,831 | See Note (6) | See Note (6) |
2017 | 2016 | 2015 | |||||||||||||||||
Name | Change in Actuarial Assumptions | Change Due to Other Factors | Change in Actuarial Assumptions | Change Due to Other Factors | Change in Actuarial Assumptions | Change Due to Other Factors | |||||||||||||
Patrick Sinks | $ | 570,271 | $ | 1,007,212 | $ | 176,166 | $ | 924,756 | $ | (200,769 | ) | $ | 656,381 | ||||||
Timothy Mattke | 173,042 | 223,316 | 56,713 | 189,289 | (47,985 | ) | 149,055 | ||||||||||||
James Hughes | 222,500 | 247,007 | 76,065 | 213,363 | (96,255 | ) | 185,098 | ||||||||||||
Jeffrey Lane | 418,569 | 312,519 | 96,390 | 359,506 | (138,269 | ) | 377,189 | ||||||||||||
Stephen Mackey | 6,401 | 46,483 | (426 | ) | 30,520 | See Note(6) | See Note(6) |
Estimated Future Payouts Under Non-Equity Incentive Plan Awards(1) | Estimated Future Payouts Under Equity Incentive Plan Awards(2) | Grant Date Fair Value of Stock and Option Awards(3) ($) | |||||||||||||||||||||
Name | Grant Date | Type of Award | Target ($) | Maximum ($) | Target (#) | Maximum (#) | |||||||||||||||||
Timothy Mattke | 1/27/2020 | Annual Bonus Incentive(1) | 1,200,000 | 2,400,000 | |||||||||||||||||||
1/27/2020 | RSUs-Cliff Perf. Vest(4) | 196,560 | 315,000 | 2,686,975 | |||||||||||||||||||
Salvatore Miosi | 1/27/2020 | Annual Bonus Incentive(1) | 878,900 | 1,757,800 | |||||||||||||||||||
1/27/2020 | RSUs-Cliff Perf. Vest(4) | 123,552 | 198,000 | 1,688,956 | |||||||||||||||||||
Nathaniel Colson | 1/27/2020 | Annual Bonus Incentive(1) | 393,750 | 787,500 | |||||||||||||||||||
1/27/2020 | RSUs-Cliff Perf. Vest(4) | 67,392 | 108,000 | 921,249 | |||||||||||||||||||
James Hughes | 1/27/2020 | Annual Bonus Incentive(1) | 492,975 | 985,950 | |||||||||||||||||||
1/27/2020 | RSUs-Cliff Perf. Vest(4) | 67,392 | 108,000 | 921,249 | |||||||||||||||||||
Paula Maggio | 1/27/2020 | Annual Bonus Incentive(1) | 478,350 | 956,700 | |||||||||||||||||||
1/27/2020 | RSUs-Cliff Perf. Vest(4) | 67,392 | 108,000 | 921,249 |
Estimated Future Payouts Under Non-Equity Incentive Plan Awards (1) | Estimated Future Payouts Under Equity Incentive Plan Awards (2) | Grant Date Fair Value of Stock Option Awards (3) ($) | |||||||||||
Name | Grant Date | Threshold ($) | Target ($) | Maximum ($) | Threshold (#) | Target (#) | Maximum (#) | ||||||
Patrick Sinks | 1/23/2017 | 0 | 1,275,000 | 2,550,000 | 0 | 243,320 | 308,000 | 2,532,961 | |||||
Timothy Mattke | 1/23/2017 | 0 | 596,813 | 1,193,625 | 0 | 83,424 | 105,600 | 868,444 | |||||
James Hughes | 1/23/2017 | 0 | 450,000 | 900,000 | 0 | 83,424 | 105,600 | 868,444 | |||||
Jeffrey Lane | 1/23/2017 | 0 | 615,938 | 1,231,875 | 0 | 83,424 | 105,600 | 868,444 | |||||
Stephen Mackey | 1/23/2017 | 0 | 507,263 | 1,014,525 | 0 | 83,424 | 105,600 | 868,444 |
Equity Incentive Plan Awards | ||||
Name | Number of Unearned Shares, Units or Other Rights That Have Not Vested(1) (#) | Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested(2) ($) | ||
Patrick Sinks | 675,921 | 9,537,245 | ||
Timothy Mattke | 231,744 | 3,269,908 | ||
James Hughes | 151,293 | 2,134,744 | ||
Jeffrey Lane | 231,744 | 3,269,908 | ||
Stephen Mackey | 201,776 | 2,847,059 |
Equity Incentive Plan Awards | |||||||||||||||||||||||
Name | Number of Shares or Units That Have Not Vested(1) (#) | Market Value of Shares or Units That Have Not Vested(2) ($) | Number of Unearned Shares, Units or Other Rights That Have Not Vested(3) (#) | Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested(2) ($) | |||||||||||||||||||
Timothy Mattke | 75,000 | 941,250 | 346,118 | 4,343,781 | |||||||||||||||||||
Salvatore Miosi | 60,000 | 753,000 | 292,415 | 3,669,808 | |||||||||||||||||||
Nathaniel Colson | 23,495 | 294,862 | 52,650 | 660,758 | |||||||||||||||||||
James Hughes | 37,500 | 470,625 | 251,105 | 3,151,368 | |||||||||||||||||||
Paula Maggio | 6,668 | 83,683 | 146,772 | 1,841,989 |
Name | Number of Shares Acquired on Vesting (#) | Value Realized on Vesting(1) ($) | ||||||
Timothy Mattke | 105,600 | 1,377,024 | ||||||
Salvatore Miosi | 105,600 | 1,377,024 | ||||||
Nathaniel Colson | 4,820 | 63,836 | ||||||
James Hughes | 105,600 | 1,377,024 | ||||||
Paula Maggio | 6,666 | 51,995 |
Name | Number of Shares Acquired on Vesting (#) | Value Realized on Vesting(1) ($) | |||
Patrick Sinks | 282,094 | 3,040,242 | |||
Timothy Mattke | 110,208 | 1,187,777 | |||
James Hughes | 30,894 | 337,393 | |||
Jeffrey Lane | 110,208 | 1,187,777 | |||
Stephen Mackey | 43,824 | 483,984 |
Name | Plan Name(1) | Number of Years Credited Service (#) | Present Value of Accumulated Benefit(2) ($) | Payments During Last Fiscal Year(3) ($) | ||||||||||
Timothy Mattke | Qualified Pension Plan | 14.6 | 1,814,758 | — | ||||||||||
Supplemental Executive Retirement Plan | 14.6 | 267,744 | 6,679 | |||||||||||
Salvatore Miosi | Qualified Pension Plan | 32.7 | 2,352,568 | — | ||||||||||
Supplemental Executive Retirement Plan | 32.7 | 189,813 | — | |||||||||||
Nathaniel Colson | Qualified Pension Plan | 6.4 | 46,039 | — | ||||||||||
Supplemental Executive Retirement Plan | 6.4 | 10,528 | — | |||||||||||
James Hughes | Qualified Pension Plan | 33.3 | 3,103,713 | — | ||||||||||
Supplemental Executive Retirement Plan | 33.3 | 152,546 | — | |||||||||||
Paula Maggio | Qualified Pension Plan | 2.5 | 61,550 | — | ||||||||||
Supplemental Executive Retirement Plan | 2.5 | 30,759 | — |
Name | Plan Name(1) | Number of Years Credited Service (#) | Present Value of Accumulated Benefit(2) ($) | Payments During Last Fiscal Year(3) ($) | ||
Patrick Sinks | Qualified Pension Plan | 39.4 | 3,181,979 | — | ||
Supplemental Executive Retirement Plan | 39.4 | 3,371,413 | 26,392 | |||
Timothy Mattke | Qualified Pension Plan | 11.6 | 808,705 | — | ||
Supplemental Executive Retirement Plan | 11.6 | 198,102 | — | |||
Jay Hughes | Qualified Pension Plan | 30.3 | 1,918,509 | — | ||
Supplemental Executive Retirement Plan | 30.3 | 135,109 | — | |||
Jeffrey Lane(4) | Qualified Pension Plan | 21.3 | 2,743,986 | — | ||
Supplemental Executive Retirement Plan | 21.3 | 2,341,094 | 14,703 | |||
Stephen Mackey | Qualified Pension Plan | 2.5 | 52,063 | — | ||
Supplemental Executive Retirement Plan | 2.5 | 38,118 | — |
Name | Termination Scenario | Total ($) | Cash Payment(1) ($) | Value of Restricted Equity and Stock Options that will Vest on an Accelerated Basis(2) ($) | Value of Restricted Equity and Stock Options Eligible for Continued Vesting(2) ($) | Value of Other Benefits(3) ($) | ||||||||||||||
Timothy Mattke | Change in control with qualifying termination | 13,166,652 | 5,263,254 | 7,725,780 | — | 177,618 | ||||||||||||||
Change in control without qualifying termination | — | — | — | — | — | |||||||||||||||
Death | 7,725,780 | — | 7,725,780 | — | — | |||||||||||||||
Salvatore Miosi | Change in control with qualifying termination | 4,169,072 | — | 4,169,072 | — | — | ||||||||||||||
Change in control without qualifying termination | — | — | — | — | — | |||||||||||||||
Death | 6,069,180 | — | 6,069,180 | — | — | |||||||||||||||
Nathaniel Colson | Change in control with qualifying termination | 690,363 | — | 690,363 | — | — | ||||||||||||||
Change in control without qualifying termination | — | — | — | — | — | |||||||||||||||
Death | 1,704,064 | — | 1,704,064 | — | — | |||||||||||||||
James Hughes | Change in control with qualifying termination | 3,916,993 | — | 3,916,993 | — | — | ||||||||||||||
Change in control without qualifying termination | — | — | — | — | — | |||||||||||||||
Death | 4,657,305 | — | 4,657,305 | — | — | |||||||||||||||
Paula Maggio | Change in control with qualifying termination | 2,558,719 | — | 2,558,719 | — | — | ||||||||||||||
Change in control without qualifying termination | — | — | — | — | — | |||||||||||||||
Death | 2,945,083 | — | 2,945,083 | — | — |
Name | Termination Scenario | Total ($) | Cash Payment(1) ($) | Value of Restricted Equity and Stock Options that will Vest on an Accelerated Basis(2) ($) | Value of Restricted Equity and Stock Options Eligible for Continued Vesting(2) ($) | Value of Other Benefits(3) ($) | |||||
Patrick Sinks | Change in control with qualifying termination | 15,369,790 | 5,675,439 | 9,537,245 | — | 157,106 | |||||
Change in control without qualifying termination | — | — | — | — | — | ||||||
Death | 9,537,245 | — | 9,537,245 | — | — | ||||||
Timothy Mattke | Change in control with qualifying termination | 6,364,803 | 2,945,476 | 3,269,908 | — | 149,419 | |||||
Change in control without qualifying termination | — | — | — | — | — | ||||||
Death | 3,269,908 | — | 3,269,908 | — | — | ||||||
James Hughes | Change in control with qualifying termination | 1,948,711 | — | 1,948,704 | — | 7 | |||||
Change in control without qualifying termination | — | — | — | — | — | ||||||
Death | 2,134,744 | — | 2,134,744 | — | — | ||||||
Jeffrey Lane | Change in control with qualifying termination | 6,595,240 | 3,170,012 | 3,269,908 | — | 155,320 | |||||
Change in control without qualifying termination | — | — | — | — | — | ||||||
Retirement | 1,779,892 | — | — | 1,779,892 | — | ||||||
Death | 3,269,908 | — | 3,269,908 | — | — | ||||||
Stephen Mackey | Change in control in qualifying termination | 1,977,727 | — | 1,977,714 | — | 13 | |||||
Change in control without qualifying termination | — | — | — | — | — | ||||||
Death | 2,847,059 | — | 2,847,059 | — | — |
Median of the 2020 Annual Total Compensation of all of our Employees, except the CEO | 2020 Annual Total Compensation of the CEO | Ratio of the Median of the 2020 Annual Total Compensation of all of our Employees, except the CEO, to the Annual 2020 Total Compensation of the CEO | ||||||
$171,075 | $5,545,133 | 1:32 |
Median of the 2017 Annual Total Compensation of all of our Employees, except the CEO | 2017 Annual Total Compensation of the CEO | Ratio of the Median of the 2017 Annual Total Compensation of all of our Employees, except the CEO, to the Annual 2017 Total Compensation of the CEO |
$ 139,118 | $ 7,052,026 | 1:51 |
2020 | 2019 | |||||||
Audit Fees | 2,693,856 | 2,834,000 | ||||||
Audit-Related Fees | 130,000 | 140,711 | ||||||
Tax Fees | 55,000 | 35,552 | ||||||
All Other Fees | 3,870 | 3,870 | ||||||
Total Fees | 2,882,726 | 3,014,133 |
2017 | 2016 | |||
Audit Fees | 2,200,000 | 2,135,000 | ||
Audit-Related Fees | — | 149,838 | ||
Tax Fees | 35,784 | 36,074 | ||
All Other Fees | 104,945 | 89,970 | ||
Total Fees | 2,340,729 | 2,410,882 |
RATIFICATION OF THE APPOINTMENT OF PWC AS OUR INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM. PROXY CARDS AND VOTING INSTRUCTION FORMS WILL BE VOTED FOR RATIFICATION UNLESS A SHAREHOLDER GIVES OTHER INSTRUCTIONS ON THE PROXY CARD OR VOTING INSTRUCTION FORM. |
Term | Description | ||||
Benchmarking Peer Group / Benchmarking Peers | |||||
CD&A | Compensation Discussion & Analysis. | ||||
Committee | The Management Development, Nominating and Governance Committee of our Board. | ||||
Compensation Consultant | Frederic W. Cook & Co., the Committee’s independent compensation consultant. | ||||
EVP | Executive Vice President. | ||||
MGIC | Our wholly-owned subsidiary, Mortgage Guaranty Insurance Corporation. | ||||
Named Executive Officers | Our chief executive officer, our chief financial officer and our three other most highly compensated executive officers. The NEOs are the officers listed in the SCT. For 2018, the NEOs also included our former General Counsel. | ||||
NEOs | Named Executive Officers. | ||||
NIW | Direct new insurance written (before the effects of reinsurance). | ||||
NYSE | New York Stock Exchange. | ||||
ROE | Return on Equity. Unless otherwise indicated, ROE is calculated as | ||||
RSUs | Restricted Stock Units. | ||||
SCT | Summary Compensation Table that appears on page | ||||
TDC | Total direct compensation, which consists of base salary, bonus (or non-equity incentive compensation) and equity awards (valued at their grant date value reported in the SCT). | ||||
Non-GAAP reconciliations | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Income before tax / Net income to Adjusted pre-tax operating income / Adjusted net operating income: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | Pre-tax | Tax Effect | Net (after-tax) | Pre-tax | Tax Effect | Net (after-tax) | Pre-tax | Tax Effect | Net (after-tax) | |||||||||||||||||||||||||||||||||||||||||||||||
Income before tax / Net income | $ | 559,263 | $ | 113,170 | $ | 446,093 | $ | 847,977 | $ | 174,214 | $ | 673,763 | 844,150 | 174,053 | 670,097 | |||||||||||||||||||||||||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additional income tax benefit (provision) related to IRS litigation | — | — | — | — | — | — | — | 2,462 | (2,462) | |||||||||||||||||||||||||||||||||||||||||||||||
Net realized investment (gains) losses | (13,245) | (2,781) | (10,464) | (5,108) | (1,073) | (4,035) | 1,353 | 284 | 1,069 | |||||||||||||||||||||||||||||||||||||||||||||||
Loss on debt extinguishment | 26,736 | 5,615 | 21,121 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Adjusted pre-tax operating income / Adjusted net operating income | $ | 572,754 | $ | 116,004 | $ | 456,750 | $ | 842,869 | $ | 173,141 | $ | 669,728 | $ | 845,503 | $ | 176,799 | $ | 668,704 | ||||||||||||||||||||||||||||||||||||||
Reconciliation of Net income per diluted share to Adjusted net operating income per diluted share: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted average diluted shares outstanding | 359,293 | 373,924 | 386,078 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income per diluted share | $ | 1.29 | $ | 1.85 | $ | 1.78 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Additional income tax benefit (provision) related to IRS litigation | — | — | (0.01) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized investment (gains) losses | (0.03) | (0.01) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss on debt extinguishment | 0.06 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted net operating income per diluted share (1) | $ | 1.32 | $ | 1.84 | $ | 1.78 |
Reconciliation of Income before tax / Net income to Adjusted pre-tax operating income / Adjusted net operating income | |||||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||||
2017 | 2016 | 2015 | |||||||||||||||||||||||||
(In thousands) | Pre-tax | Tax provision (benefit) | Net (after-tax) | Pre-tax | Tax provision (benefit) | Net (after-tax) | Pre-tax | Tax provision (benefit) | Net (after-tax) | ||||||||||||||||||
Income before tax / Net income | $ | 784,496 | $ | 428,735 | $ | 355,761 | 514,714 | 172,197 | 342,517 | 487,687 | (684,313 | ) | 1,172,000 | ||||||||||||||
Adjustments: | |||||||||||||||||||||||||||
Additional income tax provision related to the rate decrease included in the Tax Act | — | (132,999 | ) | 132,999 | — | — | — | — | — | — | |||||||||||||||||
Additional income tax provision related to IRS litigation | — | (29,039 | ) | 29,039 | — | (731 | ) | 731 | — | (580 | ) | 580 | |||||||||||||||
Net realized investment gains | (249 | ) | (87 | ) | (162 | ) | (8,932 | ) | (3,126 | ) | (5,806 | ) | (28,361 | ) | (9,926 | ) | (18,435 | ) | |||||||||
Loss on debt extinguishment | 65 | 23 | 42 | 90,531 | 31,686 | 58,845 | 507 | 177 | 330 | ||||||||||||||||||
Effect of change in deferred tax asset valuation allowance | — | — | — | — | — | — | — | 847,810 | (847,810 | ) | |||||||||||||||||
Adjusted pre-tax operating income / | |||||||||||||||||||||||||||
Adjusted net operating income | $ | 784,312 | $ | 266,633 | $ | 517,679 | $ | 596,313 | $ | 200,026 | $ | 396,287 | $ | 459,833 | $ | 153,168 | $ | 306,665 | |||||||||
Reconciliation of Net income per diluted share to Adjusted net operating income per diluted share | |||||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||||
2017 | 2,016 | 2015 | |||||||||||||||||||||||||
Weighted average diluted shares outstanding | 394,766 | 431,992 | 468,039 | ||||||||||||||||||||||||
Net income per diluted share | $ | 0.95 | $ | 0.86 | $ | 2.60 | |||||||||||||||||||||
Additional income tax provision related to the rate decrease included in the Tax Act | 0.34 | — | — | ||||||||||||||||||||||||
Additional income tax provision related to IRS litigation | 0.07 | — | — | ||||||||||||||||||||||||
Net realized investment gains | — | (0.01 | ) | (0.04 | ) | ||||||||||||||||||||||
Loss on debt extinguishment | — | 0.14 | — | ||||||||||||||||||||||||
Effect of change in deferred tax asset valuation allowance | — | — | (1.81 | ) | |||||||||||||||||||||||
Adjusted net operating income per diluted share | $ | 1.36 | $ | 0.99 | $ | 0.75 |
Reconciliation of Book Value per Share to Adjusted Book Value per Share for 2020 Equity Awards | ||||||||||||||
(In thousands, except per share amounts) | 2020 | 2019 | ||||||||||||
Shareholders' Equity (Book Value) | $ | 4,698,986 | $ | 4,309,234 | ||||||||||
Divided by Shares Outstanding | 338,573 | 347,308 | ||||||||||||
Book Value per Share | $ | 13.88 | $ | 12.41 | ||||||||||
Adjusted Book Value for 2020 Equity Awards (from below) | $ | 4,623,283 | $ | 4,236,527 | ||||||||||
Divided by Shares Outstanding (from below) | 348,185 | 347,308 | ||||||||||||
Adjusted Book Value per Share for 2020 Equity Awards | $ | 13.28 | $ | 12.20 | ||||||||||
Shareholders' Equity (Book Value) | $ | 4,698,986 | $ | 4,309,234 | ||||||||||
Common Stock Repurchases | 119,997 | — | ||||||||||||
Accumulated Other Comprehensive (Income) Loss | (216,821) | (72,707) | ||||||||||||
Loss on Debt Extinguishment | 21,121 | — | ||||||||||||
Adjusted Book Value for 2020 Equity Awards | $ | 4,623,283 | $ | 4,236,527 | ||||||||||
Shares Outstanding | 338,573 | 347,308 | ||||||||||||
Common Stock Repurchases | 9,612 | — | ||||||||||||
Adjusted Shares Outstanding | 348,185 | 347,308 |
Reconciliation of Book Value per Share to Adjusted Book Value per Share for 2017 Equity Awards | ||||||||
(In thousands, except per share amounts) | 2017 | 2016 | ||||||
Shareholders' Equity (Book Value) | $ | 3,154,526 | $ | 2,548,842 | ||||
Divided by Shares Outstanding | 370,567 | 340,663 | ||||||
Book Value per Share | $ | 8.51 | $ | 7.48 | ||||
Adjusted Book Value for 2017 Equity Awards (from below) | $ | 3,349,765 | $ | 2,623,942 | ||||
Divided by Shares Outstanding | 370,567 | 340,663 | ||||||
Adjusted Book Value per Share for 2017 Equity Awards | $ | 9.04 | $ | 7.70 | ||||
Shareholders' Equity (Book Value) | $ | 3,154,526 | $ | 2,548,842 | ||||
Impact of Conversion of 2020 Convertible Debt | 42 | — | ||||||
Litigation Accruals | 29,039 | |||||||
Accumulated Other Comprehensive Loss ("AOCL") | 43,783 | 75,100 | ||||||
Effects of Tax Law and Change in Accounting Principle | 122,375 | — | ||||||
Adjusted Book Value for 2017 Equity Awards | $ | 3,349,765 | $ | 2,623,942 |
Reconciliation of Book Value per Share to Adjusted Book Value per Share for 2016 Equity Awards | ||||||||||||
(In thousands, except per share amounts) | 2017 | 2016 | 2015 | |||||||||
Shareholders' Equity (Book Value) | $ | 3,154,526 | $ | 2,548,842 | $ | 2,236,140 | ||||||
Divided by Shares Outstanding | 370,567 | 340,663 | 339,657 | |||||||||
Book Value per Share | $ | 8.51 | $ | 7.48 | $ | 6.58 | ||||||
Adjusted Book Value for 2016 Equity Awards (from below) | $ | 3,120,776 | $ | 2,623,942 | $ | 2,297,020 | ||||||
Divided by Adjusted Shares Outstanding (from below) | 341,444 | 340,663 | 339,657 | |||||||||
Adjusted Book Value per Share for 2016 Equity Awards | $ | 9.14 | $ | 7.70 | $ | 6.76 | ||||||
Shares Outstanding | 370,567 | 340,663 | 339,657 | |||||||||
Impact of Conversion of 2020 Convertible Debt | (29,123 | ) | — | — | ||||||||
Adjusted Shares Outstanding | 341,444 | 340,663 | 339,657 | |||||||||
Shareholders' Equity (Book Value) | $ | 3,154,526 | $ | 2,548,842 | $ | 2,236,140 | ||||||
Impact of Conversion of 2020 Convertible Debt | (199,908 | ) | — | — | ||||||||
Accumulated Other Comprehensive Loss ("AOCL") | 43,783 | 75,100 | 60,880 | |||||||||
Effects of Tax Law and Change in Accounting Principle | 122,375 | — | — | |||||||||
Adjusted Book Value for 2016 Equity Awards | $ | 3,120,776 | $ | 2,623,942 | $ | 2,297,020 |
Reconciliation of Book Value per Share to Adjusted Book Value per Share for 2015 Equity Awards | ||||||||||||
(In thousands, except per share amounts) | 2017 | 2016 | 2015 | |||||||||
Shareholders' Equity (Book Value) | $ | 3,154,526 | $ | 2,548,842 | $ | 2,236,140 | ||||||
Divided by Shares Outstanding | 370,567 | 340,663 | 339,657 | |||||||||
Book Value per Share | $ | 8.51 | $ | 7.48 | $ | 6.58 | ||||||
Adjusted Book Value for 2015 Equity Awards (from below) | $ | 2,953,304 | $ | 2,016,287 | $ | 1,534,940 | ||||||
Divided by Shares Outstanding | 370,567 | 340,663 | 339,657 | |||||||||
Adjusted Book Value per Share for 2015 Equity Awards | $ | 7.97 | $ | 5.92 | $ | 4.52 | ||||||
Shareholders' Equity (Book Value) | $ | 3,154,526 | $ | 2,548,842 | $ | 2,236,140 | ||||||
Accumulated Other Comprehensive Loss ("AOCL") | 43,783 | 75,100 | 60,880 | |||||||||
Effects of Tax Law and Change in Accounting Principle | 122,375 | — | — | |||||||||
DTA | (367,380 | ) | (607,655 | ) | (762,080 | ) | ||||||
Adjusted Book Value for 2015 Equity Awards | $ | 2,953,304 | $ | 2,016,287 | $ | 1,534,940 |
Reconciliation of Book Value per Share to Adjusted Book Value per Share for 2019 Equity Awards | ||||||||||||||||||||
(In thousands, except per share amounts) | 2020 | 2019 | 2018 | |||||||||||||||||
Shareholders' Equity (Book Value) | $ | 4,698,986 | $ | 4,309,234 | $ | 3,581,891 | ||||||||||||||
Divided by Shares Outstanding | 338,573 | 347,308 | 355,371 | |||||||||||||||||
Book Value per Share | $ | 13.88 | $ | 12.41 | $ | 10.08 | ||||||||||||||
Adjusted Book Value for 2019 Equity Awards (from below) | $ | 4,881,009 | $ | 4,411,605 | $ | 3,706,105 | ||||||||||||||
Divided by Shares Outstanding (from below) | 356,869 | 355,992 | 355,371 | |||||||||||||||||
Adjusted Book Value per Share for 2019 Equity Awards | $ | 13.68 | $ | 12.39 | $ | 10.43 | ||||||||||||||
Shareholders' Equity (Book Value) | $ | 4,698,986 | $ | 4,309,234 | $ | 3,581,891 | ||||||||||||||
Common Stock Repurchases | 234,123 | 114,126 | — | |||||||||||||||||
Loss on Debt Extinguishment | 21,121 | — | — | |||||||||||||||||
Litigation Accruals | 18,565 | 18,565 | — | |||||||||||||||||
Accumulated Other Comprehensive (Income) Loss | (216,821) | (72,707) | 124,214 | |||||||||||||||||
Initiation of Dividends | 125,035 | 42,387 | — | |||||||||||||||||
Adjusted Book Value for 2019 Equity Awards | $ | 4,881,009 | $ | 4,411,605 | $ | 3,706,105 | ||||||||||||||
Shares Outstanding | 338,573 | 347,308 | 355,371 | |||||||||||||||||
Common Stock Repurchases | 18,296 | 8,684 | — | |||||||||||||||||
Adjusted Shares Outstanding | 356,869 | 355,992 | 355,371 |
Reconciliation of Book Value per Share to Adjusted Book Value per Share for 2018 Equity Awards | ||||||||||||||||||||||||||
(In thousands, except per share amounts) | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||||||||
Shareholders' Equity (Book Value) | $ | 4,698,986 | $ | 4,309,234 | $ | 3,581,891 | $ | 3,154,526 | ||||||||||||||||||
Divided by Shares Outstanding | 338,573 | 347,308 | 355,371 | 370,567 | ||||||||||||||||||||||
Book Value per Share | $ | 13.88 | $ | 12.41 | $ | 10.08 | $ | 8.51 | ||||||||||||||||||
Adjusted Book Value for 2018 Equity Awards (from below) | $ | 5,053,588 | $ | 4,541,797 | $ | 3,878,684 | $ | 3,198,309 | ||||||||||||||||||
Divided by Adjusted Shares Outstanding (from below) | 372,851 | 371,973 | 371,353 | 370,567 | ||||||||||||||||||||||
Adjusted Book Value per Share for 2018 Equity Awards | $ | 13.55 | $ | 12.21 | $ | 10.44 | $ | 8.63 | ||||||||||||||||||
Shareholders' Equity (Book Value) | $ | 4,698,986 | $ | 4,309,234 | $ | 3,581,891 | $ | 3,154,526 | ||||||||||||||||||
Litigation Accruals | 16,103 | 16,103 | (2,462) | — | ||||||||||||||||||||||
Common Stock Repurchases | 409,182 | 289,185 | 175,059 | — | ||||||||||||||||||||||
Loss on Debt Extinguishment | 21,121 | — | — | — | ||||||||||||||||||||||
Initiation of Dividends | 125,035 | — | — | — | ||||||||||||||||||||||
Accumulated Other Comprehensive (Income) Loss | (216,821) | (72,707) | 124,214 | 43,783 | ||||||||||||||||||||||
Tax Law and Change in Accounting Principle | (18) | (18) | (18) | — | ||||||||||||||||||||||
Adjusted Book Value for 2018 Equity Awards | $ | 5,053,588 | $ | 4,541,797 | $ | 3,878,684 | $ | 3,198,309 | ||||||||||||||||||
Shares Outstanding | 338,573 | 347,308 | 355,371 | 370,567 | ||||||||||||||||||||||
Conversion of Convertible Debt | 34,278 | 24,665 | 15,982 | — | ||||||||||||||||||||||
Adjusted Shares Outstanding | 372,851 | 371,973 | 371,353 | 370,567 |