Edward Hoffman
RADIAN GROUPAbout Edward Hoffman
Edward J. Hoffman is Senior Executive Vice President and General Counsel of Radian Group Inc., age 51; he joined Radian in 2005, was appointed General Counsel in 2008, and elevated to Senior EVP in January 2018. He also oversaw ERM and previously oversaw information security (2022–2024), government relations (2017–2021), and human resources (2011–2020), and served as Corporate Secretary from 2008 until January 2025 . Company performance context for incentive alignment: 2024 company net income was $604,440 thousand, Adjusted Book Value Per Share was $33.71, and a $100 investment in RDN since 12/31/2019 was worth $147.58 vs peer group $125.72; these measures drive pay-for-performance via BVPS growth and TSR-linked LTI design . In 2024, Hoffman’s STI payout was $830,000 (158% of target, 79% of max), reflecting strong individual execution against governance, strategic, compliance, and ERM objectives .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Radian Group Inc. | Senior EVP, General Counsel | 2018–Present | Executive oversight of ERM; advisor to Board on governance, succession and risk oversight; legal support for strategic plan execution (products, conduit growth, capital/liquidity transactions) |
| Radian Group Inc. | General Counsel; Corporate Secretary | 2008–Jan 2025 (Corporate Secretary through Jan 2025) | Led legal, compliance and governance; served as Corporate Secretary for board processes and records |
| Radian Group Inc. | Various enterprise oversight roles | HR (2011–2020); Gov’t Relations (2017–2021); Info Security (2022–2024) | Strengthened enterprise functions including cybersecurity, talent/HR, and regulatory engagement |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Drinker Biddle & Reath LLP (Philadelphia) | Corporate & Securities Group | 2005 and earlier | Corporate/securities practice experience leveraged for public company governance and transactions |
Fixed Compensation
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Base Salary ($) | 500,000 | 500,000 | 525,000 |
| All Other Compensation ($) | 40,477 | 40,477 | 42,778 |
| 2024 All Other Compensation Components ($) | Amount |
|---|---|
| Savings Plan Contributions | 20,700 |
| Benefit Restoration Plan (BRP) Contributions | 18,603 |
| Imputed Income – Long-term disability insurance | 2,167 |
| Imputed Income – Life insurance | 1,308 |
| Other | — |
| Total | 42,778 |
| Base Salary Progression | 2023 | 2024 | 2025 |
|---|---|---|---|
| Edward J. Hoffman ($) | 500,000 | 525,000 | 525,000 |
Performance Compensation
| Component | Metric(s) | Weighting | Target | Max | Actual (2024) | Notes |
|---|---|---|---|---|---|---|
| Short-Term Incentive (STI) | Individual goals linked to corporate strategic plan | Company increased Strategic Execution weighting to 40% for 2024 | $525,000 | $1,050,000 | $830,000 (158% of target; 79% of max) | Award based on leadership in governance roadmap, board succession, ERM/Compliance enhancements, and legal support for strategy and capital/liquidity actions |
| Long-Term Incentive (LTI) – Time-Based RSUs | Time-based RSUs vest pro rata over 3 years | 40% of LTI | 16,610 units (grant-date FV $520,225) | N/A | N/A | Granted 5/22/2024; scheduled to vest annually over 3 years |
| Long-Term Incentive (LTI) – Performance-Based RSUs (BV RSUs) | Cumulative growth in LTI Book Value Per Share (BVPS), modified by Relative TSR vs MI peers | 60% of LTI | 27,340 target units (grant-date FV $780,010) | 54,680 max units | N/A (three-year period) | Performance period 4/1/2024–3/31/2027; vest 5/15/2027; TSR modifier up to ±25% subject to absolute TSR constraint |
| BV RSU Performance Grid | Threshold | Target | Max |
|---|---|---|---|
| Cumulative LTI BVPS Growth → Payout % of Target | ≤15% → 0% | 30% → 100% | ≥45% → 200% |
| Relative TSR vs MI Peers → Modifier | Range −25% to +25% (interpolated; no positive adjustment if absolute TSR is negative) | 0.5% → 0%; 10.5% → +25% | ≤−9.5% → −25% |
| Equity Vesting and Realization (2024) | Shares/Units | $ Value |
|---|---|---|
| RSUs vested (Edward Hoffman) | 93,207 | 2,921,107 |
| Dividend equivalents paid upon vesting | — | 282,787 |
| Options exercised | 10,260 | 148,975 |
Equity Ownership & Alignment
| Beneficial Ownership (as of 3/24/2025) | Shares | % of Class |
|---|---|---|
| Edward J. Hoffman | 268,129 | <1% |
- Ownership footnotes: Shares include those held outright, allocable Savings Plan shares, and shares acquirable within 60 days via RSU conversion (88,640 shares) and option exercises (20,520 shares). Hoffman shares voting/dispositive power with his spouse for 19,500 shares .
- Stock ownership guidelines: 2.5× base salary for NEOs; unvested time-based RSUs and in-the-money options count, unvested performance RSUs do not; all NEOs in compliance as of 12/31/2024 .
- Anti-hedging/anti-pledging: Company prohibits hedging, pledging, and speculative transactions in Radian stock .
| Outstanding Equity Awards (12/31/2024) | Count | Market/Payout Value ($) | Key Terms |
|---|---|---|---|
| Time-Based RSUs (granted 5/11/2022) | 6,927 | 219,724 | Vest 5/15/2025 |
| Performance-Based RSUs (BV RSUs, granted 5/11/2022) | 68,580 (max reported) | 2,175,358 | Vest 5/15/2025; one-year post-vest holding period applies |
| Time-Based RSUs (2023 grant) | 12,587 | 399,260 | — |
| BV RSUs (2023 grant) | 29,620 | 939,546 | — |
| Time-Based RSUs (granted 5/22/2024) | 16,610 | 526,869 | Vest over three years |
| BV RSUs (granted 5/22/2024) | 27,340 | 867,225 | Performance period to 3/31/2027; vest 5/15/2027 |
| Options (exercisable) | 7,640 @ $18.42 exp 7/8/2025 | — | — |
| Options (exercisable) | 12,880 @ $12.16 exp 5/10/2026 | — | — |
- 2021 performance RSUs vesting in 2024 were subject to a one-year post-vest holding period; for Hoffman, 69,884 RSUs remained subject to the post-vest hold at year-end 2024 .
Employment Terms
| Scenario (as of 12/31/2024) | Cash Severance (Salary) | Cash Severance (Bonus) | STI (if eligible) | Performance RSUs | Time-Based RSUs | Benefits & Perqs | Total |
|---|---|---|---|---|---|---|---|
| Termination without Cause / Good Reason (No Change of Control) | 787,500 | 1,312,500 | 830,000 | 3,001,425 | 836,687 | Health $27,554; Outplacement $20,000 | 6,815,666 |
| Termination without Cause / Good Reason (In connection with Change of Control) | 787,500 | 1,312,500 | 830,000 | 4,218,544 | 1,196,072 | Health $27,554; Outplacement $20,000 | 8,392,170 |
| Death/Disability | — | — | 830,000 | 3,048,605 | 1,196,072 | — | 5,074,677 |
- Change-of-control framework: Company employs “double-trigger” provisions for payments upon a change of control .
- STI treatment: If terminated without cause on/after Dec 31 of the STI period but before payment, NEO remains eligible; pro rata for death/disability .
- Clawback: Strong compensation clawback policy that exceeds legal requirements, triggered by material restatements among other reasons .
- Deferred compensation: Radian maintains a voluntary DCP; Hoffman made no DCP contributions in 2024; BRP registrant contributions of $18,603 with an aggregate year-end balance of $346,998 .
Investment Implications
- Pay-for-performance alignment appears robust: 60% of LTI is performance-based BV RSUs with a relative TSR modifier vs MI peers (Enact, Essent, MGIC, NMI), directly linking equity vesting to book value growth and market-relative returns . 2024 company performance (net income, Adjusted BVPS, TSR) supports above-target STI outcomes for Hoffman (158% of target), indicating operational execution in governance, compliance, and strategic transactions .
- Near-term supply dynamics and insider selling pressure: Significant RSU conversions are scheduled around May 2025 (2022 grants vest/convert) and previously vested 2021 performance RSUs had a one-year post-vest holding (69,884 units for Hoffman) that rolled off in 2025; options expiring in July 2025 and May 2026 may also be exercised. This creates potential incremental sellable float, though company policies prohibit hedging/pledging and enforce ownership guidelines, moderating adverse alignment risk .
- Retention and severance economics: No gross-ups (outside limited relocation exceptions) and double-trigger CoC terms with equity acceleration provide balanced retention; Hoffman’s severance totals range from ~$6.8M (no CoC) to ~$8.4M (CoC), including equity components—material but typical for senior executives in financials, suggesting moderate retention risk if performance remains strong .
- Governance and shareholder sentiment: Anti-hedging/pledging and clawbacks are positive governance signals; 2024 say-on-pay support was ~83%, indicating shareholder acceptance of the program design and pay outcomes .
Summary Compensation (Edward J. Hoffman)
| Year | Salary ($) | Stock Awards ($) | Non-Equity Incentive ($) | All Other ($) | Total ($) |
|---|---|---|---|---|---|
| 2024 | 525,000 | 1,300,235 | 830,000 | 42,778 | 2,698,013 |
| 2023 | 500,000 | 1,200,181 | 650,000 | 40,477 | 2,390,658 |
| 2022 | 500,000 | 1,100,203 | 600,000 | 40,477 | 2,240,680 |
2024 Grants of Plan-Based Awards (Edward J. Hoffman)
| Grant Date | STI Target ($) | STI Max ($) | Time-Based RSUs (Units) | Time-Based RSUs Grant FV ($) | BV RSUs Target (Units) | BV RSUs Max (Units) | BV RSUs Grant FV ($) |
|---|---|---|---|---|---|---|---|
| 5/22/2024 | 525,000 | 1,050,000 | 16,610 | 520,225 | 27,340 | 54,680 | 780,010 |
Investment Signals to Monitor
- Form 4 activity around May 2025 (RSU conversions) and ahead of option expirations in July 2025/May 2026 to gauge selling pressure and timing .
- BVPS trajectory and TSR vs MI peers through March 2027, as these directly set LTI BV RSU payouts and signal management value creation .
- Ownership compliance and changes—Hoffman currently complies with 2.5× salary guideline; anti-pledging/hedging reduces misalignment risk .
- Say-on-pay trends and any changes in severance/LTI design (e.g., shifts in performance metrics or weights), which may alter risk/reward alignment .