Sumita Pandit
RADIAN GROUPAbout Sumita Pandit
Sumita Pandit is Senior Executive Vice President and Chief Financial Officer of Radian Group Inc. (RDN), age 47, appointed CFO in May 2023 after joining Radian in March 2023; she will assume the combined role of President and CFO upon the retirement of Derek Brummer in 2025 . She leads finance (FP&A, reporting, capital planning, investments/treasury, IR, tax) and strategic/business development; 2024 company performance under her finance leadership included $1.3B total revenues, $604M net income, $3.92 diluted EPS, $31.33 book value per share and 14.5% absolute TSR for the year .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| dLocal | Chief Operating Officer | 2021–2023 | Oversaw client management, marketing, IR, key commercial accounts, corporate development at global digital payments firm |
| J.P. Morgan Chase & Co. | Managing Director; Global Head of Fintech Investment Banking | 2015–2021 | Led fintech IB globally; deepened capital markets and strategic advisory expertise |
| Goldman Sachs | Vice President, Financial Institutions Group | 2008–2015 | Coverage/execution in FIG; strengthened finance and deal experience |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| Pushpay Holdings Limited | Director | Oct 2021–May 2023 | Public company board experience in donor engagement software |
Fixed Compensation
| Component | 2023 | 2024 | 2025 | Notes |
|---|---|---|---|---|
| Base Salary ($) | $500,000 | $550,000 | $600,000 | 2025 increase to improve competitiveness vs peer benchmarks |
| STI Target ($) | $540,000 | $650,000 | — | Target set annually by CHCM Committee; percent not disclosed |
| STI Paid ($) | $540,000 | $1,025,000 | — | 2024 payout at 158% of target |
Performance Compensation
2024 Short-Term Incentive (STI) Design and Outcomes
| Metric | Weight | Target (center) | Actual | Payout % of target |
|---|---|---|---|---|
| Adjusted diluted net operating EPS | 35% | $3.12 | $4.11 | 200% |
| Adjusted pretax operating income | 35% | $608M | $803M | 200% |
| New Insurance Written (NIW) | 30% | $51B | $52B | 101% |
| Strategic Execution | 40% of strategic bucket (overall strategic bucket 30%) | Qualitative | Achieved | 100% |
| Portfolio & Risk Mgmt | 20% (strategic) | Qualitative | Achieved | 100% |
| Capital & Liquidity | 20% (strategic) | Qualitative | Exceeded | 125% |
| Human Capital Mgmt | 20% (strategic) | Qualitative | Achieved | 100% |
| Corporate Funding Level | — | — | — | 151% (119% financial + 32% strategic) |
| Pandit STI Award | — | $650,000 | $1,025,000 | 158% of target |
Key 2024 performance contributions cited for Ms. Pandit: led finance to enhance capital/liquidity (first IG senior note offering by a monoline MI since the crisis), supported rating upgrades (S&P 2024; Fitch 2025), strengthened investor relations, reorganized Finance for leadership development, and oversaw the enterprise expense reduction program positioning $20–$25M 2025 savings vs. 2023 .
Long-Term Incentive (LTI) Structure
| Award Type | Grant Date | Target Units | Max Units | Vesting | Hold | Grant Date Fair Value ($) |
|---|---|---|---|---|---|---|
| 2024 BV RSUs (Performance) | 5/22/2024 | 35,760 | 71,520 | Vests 5/15/2027, based on cumulative LTI Book Value/share with Relative TSR modifier vs MI peers | 1-year post-vesting hold | $1,020,233 |
| 2024 Time-Based RSUs | 5/22/2024 | 21,720 | — | Vests pro rata 5/15/2025–2027 | None | $680,270 |
| Total 2024 Stock Awards | — | — | — | — | — | $1,700,503 |
| 2023 BV RSUs (Performance) | 5/17/2023 | 37,030 (target) | — | Vests 5/15/2026; 1-year post-vesting hold | 1-year post-vesting hold | Included in 2023 total |
| 2023 Time-Based RSUs | 5/17/2023 | 15,734 (remaining at 12/31/2024) | — | Pro rata 5/15/2025–2026 | None | Included in 2023 total |
| 2023 Sign-on Time-Based RSUs | 2023 | 32,823 | — | Vested 3/6/2025 | None | Included in 2023 total ($2,250,353 total stock awards) |
Performance award mechanics: BV RSUs pay 0–200% of target based on cumulative LTI Book Value per share growth (≤15% = 0%, 30% = 100%, ≥45% = 200%) adjusted by a Relative TSR modifier vs Enact, Essent, MGIC, NMI; positive TSR required for positive modifier benefit .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Beneficial ownership | 32,639 shares as of Mar 24, 2025; less than 1% of class |
| Shares outstanding (record date) | 141,220,430 shares |
| RSUs convertible within 60 days | 15,107 shares (included in beneficial totals) payable in May 2025 (time-based and vested RSUs subject to one-year hold for BV RSUs) |
| Unvested equity (as of 12/31/2024) | 2023 BV RSUs 37,030; 2024 BV RSUs 35,760; 2023 TB RSUs 15,734; 2024 TB RSUs 21,720; Sign-on TB RSUs 32,823 (vested 3/6/2025) |
| Options | None disclosed for Ms. Pandit |
| Ownership guidelines | Must hold ≥2.5x base salary within 5 years; all NEOs in compliance as of 12/31/2024 |
| Hedging/pledging | Prohibited for all employees/directors under Insider Trading Policy ; comprehensive clawback policy adopted Oct 2, 2023 |
Vesting calendar and potential supply signals: time-based RSUs vest May 15, 2025–2027 (21,720 from 2024 grant; remaining 15,734 from 2023 grant); BV RSUs vest May 15, 2026 (2023 grant) and May 15, 2027 (2024 grant) with a one-year post-vesting hold before share conversion, moderating immediate selling pressure from performance awards .
Employment Terms
| Term | Details |
|---|---|
| Role & appointment | CFO since May 2023; joined Radian March 2023; will become President & CFO upon Brummer’s retirement |
| Severance (no change of control) | 1.5x base salary + 1.5x target STI + pro‑rated target STI; 18 months health coverage reimbursement; up to 12 months outplacement ($20,000); 12‑month non‑compete/non‑solicit; agreements auto‑renew annually |
| Change of control treatment | Double‑trigger: time‑based RSUs accelerate; performance RSUs accelerate at estimated performance for full period upon qualifying termination tied to COC; otherwise standard vest at performance completion |
| Clawbacks | Mandatory recovery for material restatements per SEC/NYSE; discretionary recovery for overstated performance or misconduct; applies to current/former executive officers |
| Hedging/pledging policy | Prohibits short sales, options, hedging and pledging/margin accounts in Radian securities |
| Deferred compensation | Eligible; 2024 BRP contributions credited $20,406; aggregate BRP balance $26,055 as of YE 2024 |
| Perquisites (2024) | Matching gifts; relocation reimbursement ($421,532 sale costs + $130,206 relocation) and tax gross-up $49,363 related to relocation to HQ area |
Performance & Track Record
| 2024 Company Metrics | Value |
|---|---|
| Total revenues | $1.3B |
| Net income | $604M |
| Diluted net income per share | $3.92 |
| Adjusted diluted net operating EPS | $4.11 |
| NIW | $52.0B |
| Primary IIF | $275.1B (all-time high) |
| Book value per share | $31.33 |
| Holding company debt-to-capital | 18.7% |
| Absolute TSR (2024) | 14.5% |
Execution highlights relevant to finance leadership: inaugural IG senior notes offering and debt reduction, increased ordinary dividends upstreamed from Radian Guaranty, expanded repurchases (7.0M shares; $224M), dividend increase, new quota-share reinsurance, portfolio/risk enhancements, and cost actions positioning $20–$25M savings in 2025 vs 2023; recognized by S&P (2024) and Fitch (2025) upgrades .
Compensation Structure Analysis
- Variable pay emphasis: Heavy tilt to at-risk pay (STI/LTI); Ms. Pandit’s 2024 STI paid at 158% of target reflecting above-target corporate outcomes and individual leadership in capital/liquidity/expense initiatives .
- Year-over-year mix shift: 2023 stock awards higher due to sign‑on RSUs ($2.25M vs. $1.70M in 2024); 2024 cash incentive rose with 151% corporate funding and strong individual performance .
- LTI rigor: 60% performance-based RSUs tied to three‑year LTI Book Value/share, modified by relative TSR vs MI peers, with one‑year post‑vesting hold and no dividends on unvested equity (only accrued) .
- No problematic pay practices: No hedging/pledging, no excise tax gross‑ups (except limited relocation), double‑trigger COC only, and robust clawbacks .
Compensation Benchmarking & Say‑on‑Pay
| Peer Group (2024 benchmarking) | Primary businesses |
|---|---|
| Arch Capital, Assured Guaranty, Enact, Essent, First American, MGIC, Mr. Cooper, NMI Holdings, Old Republic, PennyMac Financial, RenaissanceRe, Stewart, Walker & Dunlop | Mortgage insurance peers and adjacent real estate finance/insurance |
| Peer median vs Radian (Sept 2023) | Revenue: Peer $2,321M vs Radian $1,191M; Market cap: Peer $4,585M vs Radian $4,263M |
| Say‑on‑Pay (2024) | 83% approval |
Investment Implications
- Alignment: Strong pay-for-performance architecture (STI tied to EPS, pretax operating income, NIW; LTI tied to book value and relative TSR) and one‑year post‑vesting hold on performance RSUs support shareholder alignment and reduce immediate selling pressure from performance awards .
- Retention/COC risk: Standard Other NEO severance (1.5x salary+bonus; double‑trigger equity acceleration) and 12‑month non‑compete/non‑solicit suggest moderate retention risk; auto‑renewing agreements and robust clawbacks temper moral hazard .
- Vesting calendar and trading signals: Time-based RSUs vest each May 15 (2025–2027), while performance RSUs convert one year after vesting (2026→2027; 2027→2028), indicating potential incremental supply around mid‑May annually, moderated by hold on BV RSUs; any Form 4 activity should be monitored around these dates .
- Capital discipline: 2024 rating upgrades, IG issuance, deleveraging, and enhanced capital returns (dividend increase, $224M repurchases) under Pandit’s finance leadership are positive signals for equity holders; continuing focus on book value growth will be central to BV RSU outcomes .