Robert Smith
NMI HoldingsAbout Robert Smith
Robert Smith is Executive Vice President and Chief Risk Officer at NMI Holdings (NMIH), responsible for credit risk and internal audit; he has served as CRO since May 2018 and joined NMI in 2012 as Vice President, Pricing & Portfolio Analytics. Smith is 55, a Chartered Financial Analyst, and holds a master’s degree in Engineering and an MBA from Stanford Graduate School of Business . Company performance under the current team was strong in 2024: revenue $651.0 million (+12% YoY), net income $360.1 million (+12%), ROE 17.4%, and shares +23.9% for the year . For broader performance context, NMI’s value of a $100 investment (company TSR proxy metric) progressed from $63 (2022) to $111 (2024), while the peer group moved from $80 to $120 over the same span .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| NMI Holdings | VP, Pricing & Portfolio Analytics | 2012–2018 | Led pricing/portfolio analytics prior to appointment as CRO |
| Washington Mutual | Not disclosed | Not disclosed | Not disclosed |
| PMIC (PMI Mortgage Insurance Co.) | Not disclosed | Not disclosed | Not disclosed |
External Roles
No external board or public company roles disclosed for Robert Smith .
Fixed Compensation
Multi-year summary (amounts as disclosed):
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Base Salary ($) | $450,000 | $470,000 | $485,000 |
| Target Bonus (%) of Salary | — | — | 100% |
| Actual Bonus Paid ($) | $607,500 | $805,580 | $873,000 |
| Stock Awards Grant-Date Fair Value ($) | $854,973 | $892,988 | $945,705 |
Notes:
- NEO annual bonus targets in 2024: 100% of salary (CEO at 175%); payouts were 180% of target for NEOs based on corporate performance .
Performance Compensation
Annual incentive design (2024 corporate objectives applied uniformly to NEOs):
| Metric | Weighting | Threshold | Target | Maximum | Actual | Payout Factor |
|---|---|---|---|---|---|---|
| Adjusted ROE | 30% | 8.0% | 12.0% | 16.0% | 18.4% | 180% |
| Adjusted Net Operating Income ($mm) | 30% | $205.5 | $308.9 | $416.8 | $478.1 | 180% |
| New Insurance Written ($bn) | 25% | $35.0 | $40.5 | $45.0 | $46.0 | 180% |
| Adjusted Expense Ratio | 15% | 24.50% | 22.50% | 20.50% | 20.22% | 180% |
- Result: Smith’s 2024 bonus paid at 180% of target ($873,000), consistent with disclosed corporate achievement .
Long-term incentives (PRSUs measured on BVPS growth):
- 2024 PRSUs: vesting based on compounded BVPS growth over 2024–2026 with Threshold/Target/Max at 7.5%/10.0%/17.5% BVPS CAGR and 50%/100%/200% payout; linear interpolation applies .
- 2022 PRSUs: paid out at 200% based on 21.9% BVPS growth over 2022–2024, certified in Feb 2025 .
Equity Ownership & Alignment
Beneficial ownership and guidelines:
| Item | Value | Notes |
|---|---|---|
| Beneficial Ownership (shares) | 144,964 (<1%) | 104,566 shares held directly; 40,398 vested stock options included |
| Stock Ownership Guideline | 3x base salary (EVP) | Applies to CRO; must retain 50% of net shares until threshold met |
| Guideline Compliance | Met as of 12/31/2024 | Company states all NEOs met requirements |
| Hedging / Pledging | Prohibited | No margin or collateral pledging permitted |
| Section 16 Compliance | Fully compliant for 2024 | Company review of Forms 3/4/5 |
Outstanding equity awards (as of 12/31/2024):
| Award | Detail | Quantity/Terms | Value Basis |
|---|---|---|---|
| Options (2018) | Exercisable | 26,287 @ $16.25; exp. 5/10/2028 | — |
| Options (2019) | Exercisable | 14,111 @ $22.19; exp. 2/13/2029 | — |
| RSUs (2022) | Unvested | 3,310; vested 2/9/2025 | — |
| RSUs (2023) | Unvested | 11,573; two-thirds vested 2/8/2025; remainder 2/8/2026 | — |
| PRSUs (2023) | Outstanding | 38,574 at maximum assumption; performance period ends 12/31/2025 | — |
| RSUs (2024) | Unvested | 15,767; 40% vested 2/7/2025; 40% on 2/7/2026; 20% on 2/7/2027 | — |
| PRSUs (2024) | Outstanding | 15,767 at target; three-year performance to 12/31/2026 | — |
Vesting pressure indicator:
- Shares acquired on vesting in 2024: 50,986; value realized $1,701,769 (gross, before tax withholding) .
Employment Terms
Severance and change-in-control economics:
| Provision | Term | Source |
|---|---|---|
| Severance Plan (regular) | 12 months base salary + 12 months health premium contributions (based on years of service) | |
| CIC Severance Plan | Double-trigger required; Smith designated at 1.5x multiple and 18 months COBRA reimbursement | |
| CIC Cash Severance (illustrative) | $1,982,843 (if terminated following CIC) | |
| Accelerated Vesting (illustrative) | $2,415,279 RSU/PRSU value (following CIC; earned per plan rules) | |
| Total (CIC + termination) | $4,398,122 (cash + equity) | |
| Death/Disability | RSUs pro-rata; PRSUs vest at target | |
| Clawback | SEC/Nasdaq-compliant Compensation Recovery Policy adopted Sept 13, 2023 | |
| Tax Gross-Ups | None for NEOs |
Performance & Track Record
Company performance context over Smith’s CRO tenure:
| Metric | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Company TSR (value of $100) | $68 | $66 | $63 | $89 | $111 |
| Peer Group TSR (value of $100) | $86 | $91 | $80 | $112 | $120 |
Financial results (recent years):
- Revenue ($ thousands): 2023 $579,003; 2024 $650,971 .
- Net Income ($ thousands): 2023 $322,110; 2024 $360,106 .
- Additional 2024 highlights: IIF $210bn (+7%), NIW $46bn (+14%), ROE 17.4%, expense ratio 21.0% (record low) .
Compensation Committee Analysis
- Peer group emphasizes pure-play MI peers (Enact, Essent, MGIC, Radian) plus broader insurance/real estate comparators; Committee does not benchmark to a specific percentile, preferring flexible ranges informed by market inputs .
- Independent compensation consultant (Semler Brossy) engaged; performs no other services and was assessed independent .
- 2024 say-on-pay approval: ~94.5% support .
Related Party Transactions and Governance Red Flags
- No related party transactions >$120,000 in 2024 beyond compensation arrangements disclosed .
- Hedging and pledging of company stock prohibited for executives/directors .
- Robust clawback policy and double-trigger CIC design mitigate shareholder-unfriendly risks .
Investment Implications
- Pay-for-performance alignment is strong: annual bonuses are fully tied to corporate metrics, and PRSUs use three-year BVPS growth, driving sustained ROE and book value creation focus .
- Vesting cadence may create periodic selling pressure (40/40/20 RSU vest tranches; 50,986 shares vested with $1.70m value realized in 2024), though ownership guidelines require retention until the 3x threshold is met .
- Retention risk appears moderate: regular severance of 12 months plus double-trigger CIC at 1.5x salary+bonus provides balanced protection without tax gross-ups; clawback and anti-hedge/pledge policies reinforce alignment .
- Execution track record is favorable: 2024 delivered record revenue/net income and ROE, with shares up 23.9% for the year; TSR recovered meaningfully from 2022 levels relative to peers .