Michael Snider - President and Chief Operating Officer | LGI Homes (LGIH) Executive Profile & Compensation

About Michael Snider

Michael Snider (age 53) is LGI Homes’ President since 2009 and Chief Operating Officer since July 2013, overseeing sales, construction, and product development . LGI’s pay design ties incentives to pre-tax net income and home closings; in 2024, the annual bonus payout rate was 80% with pre-tax net income of $258.9M and 6,131 homes closed, both below targets, underscoring pay-for-performance mechanics . Over the last five-year window presented, LGI’s cumulative TSR was $126.54 versus the peer group’s $228.94, and compensation actually paid tracked TSR and pre-tax net income trends, reflecting alignment between realized pay and performance .

Past Roles

Organization	Role	Years	Strategic Impact
LGI Homes	President	2009–present	Led sales, construction, product development; central to operating execution
LGI Homes	Chief Operating Officer	2013–present (since July 2013)	Enterprise-wide operational leadership and product execution
LGI Homes	Executive Vice President of Homebuilding	2005–2009	Scaled homebuilding operations and divisional performance
LGI Homes	Homebuilding Manager	2004	Early operational leadership in homebuilding

External Roles

Organization	Role	Years	Strategic Impact
Tadian Homes (Troy, MI)	Project Manager	2004 (prior to joining LGI)	Project management at a homebuilder; foundation for LGI operating role

Fixed Compensation

Metric	2022	2023	2024
Base Salary ($)	$625,000	$625,000	$650,000
Annual Bonus ($)	$302,671	$727,646	$519,762
Stock Awards ($, grant-date fair value)	$1,312,621	$1,312,640	$1,865,158
All Other Compensation ($)	$33,397	$36,226	$35,703
Total ($)	$2,273,689	$2,701,512	$3,070,623

Named Executive Officer	2023 Base Salary	2024 Base Salary	% Increase
Michael Snider	$625,000	$650,000	4%

Performance Compensation

Short-Term Incentive (STI)

STI Parameter	Weighting	Threshold	Target	Maximum	2024 Actual	Payout Rate
Pre-tax net income ($000s)	75%	$154,055	$290,250	$437,614	$258,913	80%
Homes closed (units)	25%	6,000	7,500	9,000	6,131	80%

Executive	Target Bonus % of Base Salary
Michael Snider	100%

2024 Total Target Compensation (Element Mix)

Name	Base Salary	STI	LTI – PSUs	LTI – RSUs	Total
Michael Snider	$650,000	$650,000	$1,092,000	$273,000	$2,665,000

Long-Term Incentive (LTI) Program Design

Attribute	PSUs	RSUs
Weight in LTI	80% of target	20% of target
Performance metric	3-year cumulative Basic EPS vs pre-set targets; payout 0–200%	Time-based retention
Risk guardrails	Absolute TSR negative caps PSU payout at 100% of target	Fixed, three-year cliff vest
Vesting	Cliff at end of 3-year performance period	Three-year cliff from grant date
2024 LTI multiple of base salary	2.1x for Snider	Included within 2.1x LTI

2024 Grants of Plan-Based Awards (Michael Snider)

Grant Date	Award Type	Units (Threshold/Target/Max or #)	Grant-Date Fair Value ($)
03/08/2024	STI	$325,000 / $650,000 / $1,300,000	—
03/08/2024	PSUs	4,878 / 9,756 / 19,512	$1,092,087
03/08/2024	RSUs	2,439	$273,022
12/15/2024	RSUs (discretionary)	5,008	$500,049

Equity Ownership & Alignment

Beneficial Ownership (as of Feb 28, 2025)

Holder	Shares Beneficially Owned	% of Outstanding
Michael Snider	196,716	<1% of 23,397,074 shares

Outstanding Unvested Equity (as of Dec 31, 2024)

Award Type	Grant Date	Units Unvested	Market Value ($)
RSUs	12/15/2024	5,008	$447,715
RSUs	03/08/2024	2,439	$218,047
RSUs	03/08/2023	2,516	$224,930
RSUs	03/15/2022	2,210	$197,574
PSUs (Target)	03/08/2024	9,756	$872,186
PSUs (Max)	03/08/2024	19,512	$1,744,373
PSUs (Target)	03/08/2023	10,062	$899,543
PSUs (Max)	03/08/2023	20,124	$1,799,086
PSUs (Target)	03/15/2022	8,839	$790,207
PSUs (Max)	03/15/2022	17,678	$1,580,413

Note: Market values use $89.40 closing price on Dec 31, 2024 .

Stock Ownership Guidelines and Compliance

Role	Requirement	Compliance Status
Chief Operating Officer	3x base salary	In compliance as of Dec 31, 2024

Executives must retain at least 50% of shares acquired from vesting until guidelines met; unvested RSUs count toward compliance, PSUs do not .

ESPP Participation (since inception through Feb 28, 2025)

Name	Shares Purchased under Existing ESPP
Michael Snider	2,695

Hedging/Pledging

Anti-hedging and insider trading policy in place; no hedging of Company securities permitted . No explicit pledging disclosure found in the proxy .

Employment Terms

Contracts and Severance

NEOs (other than the CEO) do not have employment or severance agreements; severance/change-in-control economics are governed by the 2013 Incentive Plan .

Equity Acceleration and Change-in-Control

Termination Scenario	Bonus	Acceleration from Unvested PSUs ($)	Acceleration from Unvested RSUs ($)	Total ($)
Retirement	—	—	—	—
Death	$1,300,000	$2,561,936	$1,088,266	$4,950,202
Disability	—	$2,561,936	$1,088,266	$3,650,202
Resignation	—	—	—	—
Termination	—	—	—	—
Change in Control	—	$2,561,936	$1,088,266	$3,650,202

RSUs and PSUs are fully vested upon disability, death, or immediately prior to a change in control (single-trigger acceleration for equity awards) .

Clawback

2023 clawback policy requires recovery of incentive-based compensation from current/former executive officers for three fiscal years preceding an accounting restatement; recovery equals excess over restated amount .

Vesting Schedules and Insider Selling Pressure

RSU Vesting Calendar (Three-Year Cliff Vest)

Grant Date	Units	Vesting Terms	Expected Vest Date
03/15/2022	2,210	Three-year cliff vest	03/15/2025 (third anniversary)
03/08/2023	2,516	Three-year cliff vest	03/08/2026 (third anniversary)
03/08/2024	2,439	Three-year cliff vest	03/08/2027 (third anniversary)
12/15/2024	5,008	Three-year cliff vest	12/15/2027 (third anniversary)

PSU Performance Periods and Vesting

Grant Date	Target Units	Performance Period	Vesting
03/15/2022	8,839	3-year cumulative Basic EPS; TSR cap if absolute TSR negative	Cliff vest at end of period
03/08/2023	10,062	Same as above	Cliff vest at end of period
03/08/2024	9,756	Same as above	Cliff vest at end of period

Note: Company uses $111.94 grant-date price and third-party valuation for PSUs; payouts 0–200% of target with TSR cap .

Governance and Shareholder Feedback

Say-on-Pay support exceeded 95% at the 2023 annual meeting; program structure remained unchanged in response .
Compensation Committee comprised entirely of independent directors; Meridian Compensation Partners LLC serves as independent consultant for benchmarking and design .
The company does not use stock options for NEOs; no options were granted in 2024, reducing repricing risks .

Investment Implications

Incentive alignment: STI is formulaic (75% pre-tax net income; 25% closings) and paid below target when performance misses; 2024 payout at 80% of target evidences enforcement of pay-for-performance .
LTI rigor: PSUs comprise 80% of LTI and hinge on 3-year EPS with an absolute TSR cap at 100% when TSR is negative—an investor-friendly guardrail that limits windfall payouts during drawdowns .
Retention vs. selling pressure: Three-year cliff RSUs and PSU cliff vesting create concentrated vest events (e.g., March 2025, March 2026, March/December 2027) that can increase insider selling pressure around vest dates; total unvested RSUs of 12,173 and PSU targets of 28,657 indicate meaningful equity overhang .
Change-in-control economics: Equity accelerates on a single-trigger basis at CoC with ~$3.65M of equity value eligible for acceleration at 2024 year-end prices—shareholder-friendly clawback exists, but single-trigger acceleration increases transactional optionality for the executive .
Ownership alignment: Snider beneficially owns 196,716 shares and is subject to a 3x salary ownership guideline (in compliance), with an anti-hedging policy in place; lack of pledging disclosure removes a key red flag, but continued monitoring is warranted .
Performance track: Five-year TSR underperformance vs. peer group ($126.54 vs. $228.94) highlights execution risk; however, pay actually paid has generally tracked TSR and income trends, reducing potential for misaligned pay outcomes .