Form 4: Radian Group Executive Robert Quigley Awarded Restricted Stock Units

Robert Quigley, EVP, Controller & CAO of Radian Group Inc., was granted time-based and performance-based restricted stock units (RSUs) on May 22, 2024.

Summary

• Robert Quigley, an executive at Radian Group Inc., received restricted stock units (RSUs) on May 22, 2024.
• The award includes both time-based and performance-based RSUs.
• The time-based RSUs total 4,160 shares and vest pro rata over three years starting May 15, 2024.
• The performance-based RSUs have a target award of 6,840 shares, with the potential to reach up to 13,680 shares based on company performance.
• Vesting for the performance-based RSUs occurs on May 15, 2027, contingent on Radian's cumulative growth in 'LTI Book Value per Share' and total stockholder return (TSR) compared to a peer group over three years.
• Shares from the performance-based RSUs are generally subject to a one-year post-vest holding period.

Sentiment

Score: 7

Explanation: The document indicates standard executive compensation practices, aligning executive interests with company performance. It's a neutral to slightly positive development.

Positives

• The RSU grants align executive compensation with company performance and shareholder value.
• Time-based vesting encourages continued service, while performance-based vesting incentivizes growth and competitive returns.

Risks

• The actual number of performance-based RSUs vesting depends on Radian's performance against specific metrics, which may not be achieved.
• The one-year post-vest holding period could delay the executive's ability to liquidate shares.

Future Outlook

The vesting of the performance-based RSUs is contingent on the company's future performance in terms of 'LTI Book Value per Share' growth and TSR compared to its peer group over a three-year period ending May 15, 2027.

Industry Context

Granting RSUs is a common practice in the financial services industry to align executive compensation with company performance and shareholder value. The specific metrics used for performance-based vesting, such as 'LTI Book Value per Share' and TSR, are designed to incentivize long-term growth and competitive returns.

Comparison to Industry Standards

• Many financial services companies, such as MGIC Investment Corporation and Essent Group, use similar RSU programs to incentivize executives.
• The vesting schedules and performance metrics often vary based on company-specific goals and industry benchmarks.
• Comparing Radian's RSU program to those of its peers would require a detailed analysis of the specific terms and conditions of each program.

Stakeholder Impact

• Shareholders may view the RSU grants positively as they align executive compensation with company performance and shareholder value.
• Employees may be motivated by the potential for company growth and improved TSR, which could lead to higher performance-based RSU payouts for executives.

Key Dates