Eric Ray
RADIAN GROUPAbout Eric Ray
Eric R. Ray is Senior Executive Vice President and Chief Digital Officer of Radian Group Inc. (RDN), age 63, responsible for enterprise digital strategy, information technology, and information security; he joined Radian in 2018 after a 35-year career at IBM . Company context during his tenure includes 2024 total revenues of $1.3B vs. $1.2B in 2023, net income of $604M, adjusted diluted net operating income per share of $4.11, and absolute TSR of 14.5% in 2024, reflecting strong operating and capital execution . He currently serves on the board of FinLocker, a consumer financial technology platform .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| IBM | General Manager, Global Technology Services | 2015–2018 | Led North American technology consulting, project-based services, and enterprise technology offerings . |
| IBM | General Manager, Global Financial Services Sector | 2009–2014 | Directed global financial services sector strategy and operations, supporting large FS clients . |
| IBM | General Manager, Financial Services Sector | 2007–2009 | Managed sector business development and technology offerings in financial services . |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| FinLocker | Director | Current | Oversees governance at a fintech offering consumer financial fitness tools for mortgage qualification . |
Fixed Compensation
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Base Salary ($) | 475,000 | 475,000 | 475,000 |
| STI (Cash Bonus) | 2024 Target ($) | 2024 Max ($) | 2024 Paid ($) |
|---|---|---|---|
| Annual Short-Term Incentive | 475,000 | 950,000 | 600,000 |
Performance Compensation
Short-Term Incentive (STI) Design and 2024 Outcomes
| Category | Metric | Weight | Target | Actual | Payout vs. Target | Vesting |
|---|---|---|---|---|---|---|
| Financial | Adjusted Diluted Net Operating EPS | 35% | $3.12/share | $4.11/share | 200% | Cash (annual) |
| Financial | Adjusted Pretax Operating Income | 35% | $608M | $803M | 200% | Cash (annual) |
| Financial | New Insurance Written (NIW) | 30% | $51B | $52B | 101% | Cash (annual) |
| Strategic | Strategic Execution | 12% (40% of 30%) | Qualitative | Achieved (100%) | 100% | Cash (annual) |
| Strategic | Portfolio & Risk Mgmt | 6% (20% of 30%) | Qualitative | Achieved (100%) | 100% | Cash (annual) |
| Strategic | Capital & Liquidity | 6% (20% of 30%) | Qualitative | Above Target (125%) | 125% | Cash (annual) |
| Strategic | Human Capital Mgmt | 6% (20% of 30%) | Qualitative | Achieved (100%) | 100% | Cash (annual) |
| Aggregate | Corporate Funding Level | — | — | — | 151% of target | Cash (annual) |
| Individual | Eric Ray STI Payout | — | — | — | 126% of target | Cash (annual) |
Performance highlights for Eric Ray: restructured enterprise IT to reduce expenses, repositioned homegenius platform with significant cost reductions, deployed generative AI to drive productivity, and strengthened cybersecurity posture, resulting in an above-target STI payout but below corporate funding level (126% vs. 151%) .
Long-Term Incentive (LTI) – 2024 Awards
| Award Type | Grant Date | Target Units | Max Units | Grant Fair Value ($) | Performance Metric(s) | Vesting & Holding |
|---|---|---|---|---|---|---|
| BV RSUs (Performance-based) | 5/22/2024 | 18,930 | 37,860 | 540,073 | 3-year cumulative LTI Book Value per Share growth with Relative TSR modifier vs. MI peers (Enact, Essent, MGIC, NMI) | Vests 5/15/2027; 1-year post-vesting hold; double-trigger CoC; dividend equivalents accrue and pay post-vesting |
| Time-Based RSUs | 5/22/2024 | 11,500 | — | 360,180 | Time-based only | Pro rata vest on 5/15/2025, 5/15/2026, 5/15/2027; dividend equivalents accrue; accelerated vesting under certain terminations |
Program structure emphasizes longer-term value creation with 60% performance-based LTI and 40% time-based RSUs; performance awards are subject to a one-year post-vesting hold, and the clawback policy (updated in October 2023) applies per SEC/NYSE requirements and broader discretionary triggers .
Equity Ownership & Alignment
| Metric | Value |
|---|---|
| Beneficial Ownership (as of 3/24/2025) | 70,306 shares; less than 1% of class |
| Stock Ownership Guidelines | 2.5× base salary for NEOs; all NEOs in compliance as of 12/31/2024 |
| Hedging/Pledging | Prohibited; anti-hedging and anti-pledging policy for all employees and directors |
| Dividend Equivalents on RSUs | Accrue and paid upon vesting; forfeited if awards forfeit; BV RSU dividends paid after vesting during post-vesting hold when dividends are paid on common stock |
Outstanding unvested equity (12/31/2024):
| Award | Units (#) | Market Value ($) |
|---|---|---|
| Time-Based RSUs (2022 tranche remaining) | 5,667 | 179,757 |
| BV RSUs (2022 grant) | 56,120 | 1,780,126 |
| Time-Based RSUs (2023 remaining) | 9,440 | 299,437 |
| BV RSUs (2023 grant) | 22,220 | 704,818 |
| Time-Based RSUs (2024 grant) | 11,500 | 364,780 |
| BV RSUs (2024 grant target) | 18,930 | 600,460 |
Note on selling pressure: Performance RSUs have a one-year post-vesting hold, which structurally moderates immediate post-vesting sales . We attempted to fetch Form 4 transactions for Eric Ray to assess recent selling but the insider-trades tool returned an authorization error; consider reviewing SEC Form 4 filings directly for near-term selling analysis.
Employment Terms
| Term | Detail |
|---|---|
| Severance Multiple | 1.5× base salary + 1.5× target STI, plus prorated target STI for year of termination; 18 months health coverage reimbursement and up to $20,000 outplacement; no tax gross-up; automatic annual renewal unless notice given . |
| Equity upon Termination | Time-based RSUs: partial or full acceleration based on service; Performance RSUs: prorated or full treatment depending on timing; death/disability accelerates to target; retirement preserves performance-based vesting to normal schedule; double-trigger acceleration upon Qualifying Termination around change of control . |
| Non-Compete / Non-Solicit | 12-month Restricted Period post-termination for senior executives (Other NEOs) covering competition and solicitation of employees/customers . |
| Clawback | 2023 Clawback Policy implements mandatory recoupment for material restatements and broader discretionary recovery for overstatements and misconduct; applies to current/former executive officers . |
| Insider Trading Policy | Prohibits speculative transactions (short sales, buying/selling puts/calls), pledging, margin accounts; policy filed in 2024 10-K . |
Performance & Track Record
- 2024 company outcomes included $1.3B revenues, $604M net income, $4.11 adjusted diluted net operating income per share, and 14.5% absolute TSR, supported by capital optimization and expense reductions .
- Eric Ray led restructuring of enterprise IT to reduce expenses, repositioned homegenius technology platform with significant cost reductions, deployed generative AI for productivity gains, and strengthened cyber protection, aligning with strategic execution priorities .
Say-on-Pay & Peer Benchmarking
- Say-on-pay support was approximately 83% at the 2024 annual meeting, with program refinements including increased strategic execution weighting and continued use of relative TSR modifier in LTI .
- 2024 compensation peer group (including mortgage insurers and real estate services peers) used for benchmarking NEO compensation; RDN market cap and revenue positioned near peer medians .
Compensation Structure Analysis
- High variable pay mix: for NEOs, compensation is weighted toward performance-based incentives; CEO non-fixed pay 89%, other NEOs’ base salary averages ~21% of total target compensation .
- LTI design emphasizes BV per share growth with a relative TSR modifier against closest MI peers, with a one-year post-vesting hold on performance awards—reinforcing long-term alignment and moderating immediate liquidity .
- Strong guardrails: comprehensive clawback, anti-hedging/pledging, double-trigger CoC equity treatment, and rigorous stock ownership guidelines (2.5× base salary for NEOs); all NEOs in compliance at 12/31/2024 .
Investment Implications
- Alignment: Eric Ray’s pay structure ties a majority of incentives to multi-year book value growth and relative TSR, with a post-vesting hold, reducing near-term selling pressure and strengthening long-term alignment .
- Retention risk: 12-month non-compete/non-solicit and meaningful unvested RSU balances (particularly 2022/2023/2024 tranches) provide retention hooks; severance is market-standard without gross-ups .
- Trading signals: Anti-pledging policy reduces collateral-based selling risk; lack of recent Form 4 data in this analysis due to tool authorization issues suggests reviewing SEC filings to validate near-term selling/vesting-related dispositions .
- Performance linkage: 2024 STI payout below corporate funding for Ray (126% vs. 151%) indicates individualized calibration; continued focus on cost efficiency, AI productivity, and cybersecurity are execution levers to watch .