Form 4: MGIC Investment Corp Director Timothy Holt Reports Acquisition of Common Stock and Share Units

Director Timothy Holt reported the acquisition of common stock and share units through dividend payments and phantom dividend reinvestment.

Summary

• On March 5, 2024, Timothy Holt, a director of MGIC Investment Corp, acquired 139.086 shares of common stock due to dividends paid on restricted stock units.
• Holt also acquired 529.261 share units through phantom dividend reinvestment.
• Following these transactions, Holt beneficially owns 44,037.6531 shares of common stock and 91,470.2831 share units.
• The share units are part of the MGIC Investment Corporation Deferred Compensation Plan for Non-Employee Directors and are settled in cash unless a qualified election for later distribution is made.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. The transactions reflect standard compensation practices and insider alignment with company performance.

Positives

• The acquisition of shares and share units reflects continued participation in the company's compensation plans.
• The deferred compensation plan allows for flexibility in receiving payments, which can be beneficial for tax planning.

Industry Context

This filing is a routine disclosure of insider transactions, which are common in publicly traded companies. It provides transparency into the actions of company directors and their alignment with shareholder interests.

Comparison to Industry Standards

• Director compensation packages often include stock and share unit awards to align their interests with shareholders, a common practice across the financial services industry.
• Deferred compensation plans are also standard for non-employee directors, allowing them to defer income and potentially reduce their tax burden, similar to plans offered by companies like Fannie Mae and Freddie Mac.

Stakeholder Impact

• The transactions have a minimal direct impact on stakeholders, as they are part of standard compensation practices.
• The disclosure provides transparency to shareholders regarding director compensation.

Key Dates