Mohammed Yousaf

About Mohammed Yousaf

Executive Vice President, Chief of Operations and Technology (since January 2025); age 49. Joined NMI in 2018 and previously served as EVP, Operations & IT (2022–2024), SVP & Chief Business Transformation Officer (2020–2021), and VP, Business Development & Technology Partnerships (2018–2020). Prior roles include Senior Managing Director at Home Point Financial (Mar–Nov 2018), SVP, Operations at Mr. Cooper (Oct 2012–Mar 2018), and operations/technology leadership at Wells Fargo; education includes Technical University of Budapest and a bachelor’s degree in computer science from Metropolitan State University in St. Paul, Minneapolis . Company performance context: FY2024 delivered record total revenue $651.0M, net income $360.1M, diluted EPS $4.43, ROE 17.4%, with shares up 23.9% in 2024; insurance-in-force reached $210B and NIW $46B, loss ratio 5.6%, expense ratio 21.0% .

Past Roles

External Roles

No public company directorships or external board roles disclosed for Mohammed Yousaf .

Fixed Compensation

• EVP-level compensation framework: executives are at-will employees, eligible for annual base salary, company benefit plans (401(k) with match), and an executive cash allowance program (illustrative: EVP CFO received $30,000/year) per disclosed EVP offer letter; exact base salary and allowance for Yousaf not disclosed .
• Stock ownership policy: EVPs must hold company shares valued at 3x base salary; must retain 50% of net shares from vest/exercise until guideline met; applies to executive officers including EVPs .
• Hedging/pledging: Absolute prohibition on hedging and on pledging/margining company stock for executives and directors .

Performance Compensation

The annual executive bonus plan is 100% tied to corporate objectives with threshold/target/max payout levels and Committee discretion. FY2024 objectives, weightings, and outcomes:

• Committee approved 180.0% of target payout for eligible executives based on exceeding maximum for all four objectives .
• Long-term incentives: NMI uses RSUs (time-based) and PRSUs (performance-based on 3-year cumulative BVPS growth). Typical RSU vesting schedule for executives: 40% Year 1, 40% Year 2, 20% Year 3; PRSUs payout 50%/100%/200% at 7.5%/10.0%/17.5% compound BVPS growth over three years (example 2024 PRSU grid); award sizes for Yousaf are not disclosed .

Equity Ownership & Alignment

• Ownership guideline: EVP 3x base salary; 50% post-vest holding until met .
• Equity plan mechanics (forms referenced in filings): RSUs for executives vest over three years (40/40/20 or thirds depending on grant); PRSUs measure 3-year BVPS CAGR with threshold/target/max and linear interpolation; all awards governed by the 2014 Omnibus Incentive Plan and current award agreements .
• Change-in-control treatment: Unvested RSUs accelerate upon a “change in control”; PRSUs earn/vest based on the greater of performance through the deemed period end or target, then vest immediately (per 2024 award terms) .
• 10b5-1 plans: No new adoptions, modifications, or terminations of Rule 10b5-1 or non-Rule 10b5-1 trading arrangements by Section 16 officers/directors in Q3 2025, suggesting limited pre-scheduled insider selling pressure changes in that quarter .

Employment Terms

• At-will employment: NMI’s executives are employed at-will; offer letters set salary, bonus eligibility, equity eligibility, and benefits for executive officers (illustrated via CFO offer letter) .
• Severance (amended Nov 2, 2025): For EVPs, upon qualifying involuntary termination (layoff/position elimination), lump-sum payments equal to 3 months of base salary and target annual bonus per full year of service, up to 18 months, plus prorated target bonus for year of termination and 12 months of COBRA contributions (eligibility conditioned on executing a separation agreement) .
• Change-in-control severance (double trigger): For EVPs, lump sum equals Severance Multiple (1.5x for EVPs) times base salary + target bonus, plus COBRA multiple (months aligned to Multiple), plus prorated bonus (greater of target or accrued annualized), plus accrued pay/benefits; requires termination without cause or for good reason within 24 months post-CIC (or within 6 months prior subject to definitive agreement) and signed release .
• Clawback: Compensation Recovery Policy (effective Sep 13, 2023) mandates recovery of excess incentive-based compensation upon required accounting restatements .
• Restrictive covenants: Executive EVP offer letter exemplar includes confidentiality, non-disparagement, and one-year non-solicitation of employees/investors, plus arbitration agreement; relocation reimbursements subject to clawback on certain terminations (illustrative, not specific to Yousaf) .

Investment Implications

• Strong alignment: Robust stock ownership requirements (3x salary for EVPs), post-vesting holding, and bans on hedging/pledging reduce misalignment risk and potential pledging red flags .
• Retention economics: Double-trigger CIC with 1.5x multiple for EVPs and enhanced severance plan (as of Nov 2025) provide retention but cap severance; absence of tax gross-ups and presence of clawback are shareholder-friendly .
• Selling pressure: RSU schedules (40/40/20) and PRSU 3-year performance cadence can create periodic vesting-related liquidity, but 10b5-1 plan activity was flat in Q3 2025; lack of disclosed individual holdings for Yousaf limits quantification of near-term selling pressure .
• Performance linkage: Annual cash incentives tied to AROE, adjusted NOI, NIW, and expense ratio—with FY2024 paying at 180%—support pay-for-performance across operations and cost management (areas within Yousaf’s remit), and PRSUs benchmark cumulative BVPS growth, reinforcing long-term value creation .

Notes: Yousaf is not listed as a Named Executive Officer (NEO) in the proxy; therefore, his specific base salary, target bonus percentage, and award sizes are not publicly disclosed. All incentive plan structures and severance/CIC terms cited are company policies applicable to EVP-level executives per filed documents. Share ownership quantities for Yousaf are not disclosed; beneficial ownership tables cover NEOs/directors only . Say-on-pay support was 94.5% in 2024, indicating broad shareholder approval of the compensation framework .