Form 4: MBIA AVP Bergonzi Reports Significant Stock Grant

MBIA Assistant Vice President Adam T. Bergonzi reported the acquisition of 115,385 shares of common stock and the disposition of 9,098 shares for tax purposes.

Summary

• Adam T. Bergonzi, Assistant Vice President at MBIA Inc., reported changes in his beneficial ownership of common stock.
• He acquired 115,385 shares of common stock on March 3, 2026, at a price of $6.5 per share.
• These acquired shares are time-based and will vest in equal installments on the third, fourth, and fifth anniversaries of the grant date, contingent on continued employment.
• Concurrently, he disposed of 9,098 shares of common stock on March 3, 2026, at $6.5 per share, to cover tax liabilities upon the vesting of restricted stock.
• Following these transactions, Bergonzi beneficially owns 956,542 shares of MBIA common stock, adjusted for retirement plan shares.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a moderately positive development, reflecting the company's commitment to executive retention and aligning management's interests with long-term shareholder value through equity compensation.

Positives

• The Assistant Vice President received a significant grant of 115,385 time-based shares, indicating continued incentive and alignment with shareholder interests.
• The vesting schedule over three, four, and five years promotes long-term retention of key management.

Negatives

• A portion of vested shares (9,098 shares) was immediately sold to cover tax liabilities, which is a common practice but reduces direct ownership.

Risks

• The vesting of the newly acquired shares is subject to the NEO's continued employment, posing a risk if employment ceases before vesting.

Future Outlook

The filing indicates a future vesting schedule for the acquired shares, with installments on the third, fourth, and fifth anniversaries of the grant date, contingent on continued employment. This suggests a long-term incentive structure for the Assistant Vice President.

Industry Context

StockSavvy.ai notes that executive stock grants with multi-year vesting schedules are a standard practice in the financial services industry, aligning executive incentives with long-term company performance and shareholder value. This particular grant for an Assistant Vice President is substantial, reflecting a commitment to retaining key talent.

Comparison to Industry Standards

• The grant of restricted stock units (RSUs) with a multi-year vesting schedule is a common compensation practice, comparable to structures seen at major financial institutions like JPMorgan Chase or Goldman Sachs for their senior executives, aiming to foster long-term commitment.
• The immediate sale of shares to cover tax obligations upon vesting is a standard and expected practice for equity compensation, similar to how executives at companies like Bank of America or Citigroup manage their RSU vestings.

Stakeholder Impact

• Shareholders: Potential positive impact due to increased alignment of executive incentives with long-term company performance.
• Employees: Indicates the company's use of equity compensation to retain key talent, which could be viewed positively by other employees.

Next Steps

• Future vesting of the 115,385 time-based shares on the third, fourth, and fifth anniversaries of the grant date, subject to continued employment.

Key Dates

Recommendation

This Form 4 reports a routine executive stock grant and a corresponding tax-related sale, which are standard events in executive compensation. It does not provide new fundamental information about the company's operational or financial performance that would warrant a change in investment recommendation. The grant itself is a positive for executive alignment but not a catalyst for a strong buy or sell.

Keywords

MBIA, MBI, Form 4, Insider Trading, Stock Grant, Restricted Stock, Executive Compensation, Beneficial Ownership, Adam T. Bergonzi