David B. Weinstock
Essent GroupAbout David B. Weinstock
David B. Weinstock, age 60, is Senior Vice President and Chief Financial Officer of Essent Group Ltd. (ESNT) since March 14, 2023, after serving as Vice President and Chief Accounting Officer from 2009–2023. He has 25+ years in finance, accounting and controls, previously holding senior roles at Advanta Corp. (including Chief Accounting Officer and VP of Investor Relations) and beginning his career as a Senior Manager at Arthur Andersen LLP. He holds a BS in accounting from The Pennsylvania State University and is a CPA . In 2024, ESNT delivered net income of $729M ($6.85 diluted EPS), 12% revenue growth to $1.24B, and ~11% book value per share growth, supporting a 14% ROAE; these metrics drive CFO incentive outcomes and PSU vesting frameworks (BVPS CAGR and relative TSR) .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Essent Group Ltd. | SVP & Chief Financial Officer | 2023–present | Oversees finance, capital structure, liquidity management, investment portfolio; supports debt issuance and revolver upsizing in 2024; drives finance technology implementations . |
| Essent Group Ltd. | VP & Chief Accounting Officer | 2009–2023 | Built public-company reporting, internal controls, and accounting infrastructure through growth to ~$244B MI IIF . |
| Advanta Corp. | Senior management incl. Chief Accounting Officer; VP Investor Relations | 1998–2009 | Led accounting/IR at a financial services firm; deepened external reporting and stakeholder communications capabilities . |
| Arthur Andersen LLP | Senior Manager | Not disclosed | Public accounting experience specializing in financial services; foundation for CPA expertise . |
External Roles
- None disclosed (no public company directorships or external positions listed for Mr. Weinstock) .
Fixed Compensation
| Component | 2024 Detail | Notes |
|---|---|---|
| Base Salary | $400,000 | Increased effective Jan 1, 2024 to align with peer CFOs . |
| Target Annual Bonus | 100% of base salary | AIP weighting: 50% corporate goals / 50% individual goals . |
| Actual Annual Bonus (Paid) | $540,000 (135% of target) | Reflects strong corporate and individual performance for FY2024 . |
| Target LTI Opportunity | 150% of base salary | 50% PSUs (performance- and time-based), 50% RSUs (time-based) . |
Multi-year compensation (from Summary Compensation Table):
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Salary ($) | 289,406 | 354,445 | 400,000 |
| Bonus ($) | 326,745 | 75,000 | — |
| Stock Awards ($) | 67,222 | 1,521,783 | 543,256 |
| Non-Equity Incentive ($) | 230,233 | 562,500 | 540,000 |
| All Other Comp ($) | 19,955 | 64,075 | 103,390 |
| Total ($) | 933,561 | 2,577,803 | 1,586,646 |
Performance Compensation
Annual Incentive Plan (AIP) structure for 2024:
- Weinstock weighting: Corporate 50% / Individual 50% .
- Corporate scorecard and outcomes:
| Corporate Metric (2024) | Weight | Threshold | Target | Maximum | Actual |
|---|---|---|---|---|---|
| EPS and ROE (optimize portfolio growth) | 30% | $5.00 EPS at 10% ROE | $6.00 EPS at 12% ROE | $7.00 EPS at 14% ROE | $6.85 EPS at 13.6% ROE |
| Total Revenue | 15% | $1.0B | $1.2B | $1.4B | $1.24B |
| Group Unit Economics (new business) | 15% | 10% | 13% | 16% | 15.8% |
| Essent Re third-party revenue | 15% | $70M | $80M | $90M | $78.1M |
| Strategic Accomplishments | 25% | Committee discretion | Committee discretion | Committee discretion | All completed |
- Individual goals for Weinstock included capital structure optimization, liquidity/investment actions, title-accounting controls, finance team depth, and finance tech tool rollouts .
- AIP bonus paid: $540,000 (135% of target) .
Long-term Incentives (LTI) – 2024 grants and performance framework:
- Performance Shares (PSUs): Earn-out based on 3-year Book Value Per Share (BVPS) CAGR and relative TSR vs S&P 1500 Financial Services Index; 200% max; straight-line interpolation between grid points .
- Time-based RSUs: 3-year, equal annual vesting .
Key 2024 grants (Feb 6, 2024):
| Award Type | Grant Date | Shares/Units | Vesting | Performance Grid / Metric | Grant-Date Fair Value ($) |
|---|---|---|---|---|---|
| Time-based RSUs | 2/6/2024 | 5,569 | 1/3 on 3/1/2025, 3/1/2026, 3/1/2027 | n/a | 300,002 |
| Performance RSUs (at 200% of target issued) | 2/6/2024 | 11,138 | If earned, vest 3/1/2027 | 3-yr BVPS CAGR x relative TSR grid | 243,254 |
Performance grids (excerpt):
- For 2024 grants (performance period 1/1/2024–12/31/2026): at 12% BVPS CAGR, payout 100/150/200% at ≤25th/50th/≥75th percentile TSR; at 7% BVPS, 0/50/100% respectively .
Prior-year Weinstock equity (for context):
- 3/14/2023: 25,000 RSUs (appointment grant) vesting April 1, 2026/2027/2028 ; additional 2023 RSUs (time- and performance-based) on standard schedules (performance period 2023–2025, vest 3/1/2026 if earned) .
- Dividends on unvested awards accrue as dividend equivalent rights and are paid upon vesting .
Equity Ownership & Alignment
- Beneficial ownership (as of March 7, 2025): 29,865 shares; less than 1% of shares outstanding .
- Ownership guidelines: Senior executives must hold ≥2x base salary; as of Dec 31, 2024, all senior executives met guidelines (includes Weinstock). Directors/officers prohibited from hedging; NYSE-compliant clawback policy in place .
- Pledging: No explicit pledging prohibition disclosed; no pledges disclosed for Weinstock .
Outstanding unvested equity at 12/31/2024 (market value at $54.44):
| Grant Date | Type | Unvested/Unearned Units (#) | Market Value ($) |
|---|---|---|---|
| 2/6/2024 | Time-based RSUs | 5,678 | 309,083 |
| 2/6/2024 | Performance RSUs (unearned) | 11,355 | 618,167 |
| 3/14/2023 | Time-based RSUs (25k CFO grant) | 25,883 | 1,409,056 |
| 3/14/2023 | Performance RSUs (unearned) | 10,124 | 551,166 |
| 3/14/2023 | Time-based RSUs | 3,376 | 183,797 |
| 2/7/2023 | Time-based RSUs | 2,167 | 117,950 |
| 1/6/2023 | Time-based RSUs | 1,046 | 56,961 |
| 2/8/2022 | Time-based RSUs | 510 | 27,760 |
Vesting cadence and potential selling pressure:
- Near-term vest dates likely to trigger tax withholding/sales: March 1, 2025/2026/2027 (time-based schedules) and April 1, 2026/2027/2028 (25k RSU appointment grant). Performance awards cliff-vest March 1, 2026 (2023 grant, if earned) and March 1, 2027 (2024 grant, if earned) -.
Employment Terms
| Term | Detail |
|---|---|
| Employment Agreement | Weinstock is not party to an employment agreement with the Company . |
| Severance (Without Cause/Good Reason) | No severance or benefits shown for Weinstock under termination/CIC scenarios in the Potential Payments table (all fields “—”) . |
| Change-in-Control (CIC) | No CIC cash severance/accelerated vesting shown for Weinstock in the CIC scenarios table . |
| Non-Compete/Non-Solicit | Not disclosed for Weinstock (these covenants apply to executives with employment agreements) -. |
| Clawback | NYSE-compliant clawback policy covering incentive compensation upon restatement . |
| Hedging/Pledging | Hedging prohibited by policy; pledging not expressly prohibited in proxy; none disclosed for Weinstock . |
| Deferred Comp/Pension | No defined benefit pension or non-qualified deferred compensation plans . |
Additional Governance, Say-on-Pay, and Peer Group Context
- 2024 say-on-pay approval: ~72.5% support; Board engaged top holders and added disclosure on targets/peer group; retained overall program structure .
- Compensation governance: Independent Compensation Committee (Levine, Pauls, Spiegel) with independent consultant (Korn Ferry; no conflicts) .
- Peer group for 2024 comp benchmarking: 15 financial/insurance names including MGIC, NMIH, Radian, Enact, Arch, WRB, First American, Fidelity National Financial, Old Republic, OneMain, PennyMac, RenaissanceRe, Stewart, Mr. Cooper, Assured Guaranty .
- Section 16(a) note: One delinquent filing in January for Weinstock due to inadvertent error (administrative) .
Performance & Track Record (company context relevant to CFO remit)
- 2024 highlights: Net income $729M; EPS $6.85; ROAE 14%; revenue $1.24B (+12%); NIW $46B; MI IIF $244B; NII $222M (+19%); book value per share +~11% .
- Capital actions: $500M senior notes (proceeds used to repay $425M term loan), increased revolver to $500M (maturity 2029), dividend raised to $0.31 in Mar-2025; $118M dividends and $103M buybacks in 2024 .
- Risk transfer: $363.4M EOL protection (ILN Radnor Re 2024-1), quota share/XOL programs .
Investment Implications
- Pay-for-performance alignment: CFO’s cash bonus (135% of target) tracks above-target corporate performance, with a balanced mix of quantitative (EPS/ROE, revenue, unit economics) and strategic goals; LTI is anchored to BVPS CAGR and relative TSR, directly aligning equity value creation with payouts .
- Retention and turnover risk: Unlike other NEOs, Weinstock has no employment agreement and no enumerated severance/CIC protections, but carries meaningful unvested equity through 2027–2028—this fosters retention but could increase vulnerability in a CIC scenario versus peers with double-trigger protections .
- Trading/vesting overhang: Multiple vesting dates (Mar 1 2025/26/27; Apr 1 2026/27/28) and potential PSU vesting in 2026 and 2027 may lead to mechanical sell-to-cover flows around those dates; however, no options or leverage amplify selling, and hedging is prohibited - .
- Ownership alignment: Beneficial ownership (29,865 shares, <1%) and compliance with 2x salary guideline indicate skin-in-the-game; absence of pledging disclosure and presence of an NYSE-compliant clawback reduce governance risk .
- Governance/say-on-pay watchlist: 2024’s lower say-on-pay support (72.5%) prompted engagement and added disclosure; continued monitoring of investor feedback and future say-on-pay results is warranted for compensation stability and potential program tweaks .
Overall: Weinstock’s package skews toward performance (BVPS/TSR PSUs plus balanced AIP metrics), with substantial unvested equity acting as the principal retention lever. Lack of severance/CIC benefits is atypical versus peers and could represent a retention risk in stressed or strategic scenarios, partly offset by multi-year equity vesting and ownership requirements .
Sources: ESNT 2025 DEF 14A (filed Mar 25, 2025): executive biography, compensation program, awards, ownership, policies, AIP metrics, severance/CIC, say-on-pay, and performance highlights - - - - - .