false000081458500008145852025-02-132025-02-13

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 13, 2025

 

 

MBIA Inc.

(Exact name of Registrant as Specified in Its Charter)

 

 

Connecticut

001-09583

06-1185706

(State or Other Jurisdiction
of Incorporation)

(Commission File Number)

(IRS Employer
Identification No.)

 

 

 

 

 

1 Manhattanville Road

Suite 301

 

Purchase, New York

 

10577

(Address of Principal Executive Offices)

 

(Zip Code)

 

Registrant’s Telephone Number, Including Area Code: 914 273-4545

 

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Title of each class

 

Trading
Symbol(s)

 


Name of each exchange on which registered

Common Stock

 

MBI

 

New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

Item 5.02 DEPARTURE OF DIRECTORS OR CERTAIN OFFICERS; ELECTION OF DIRECTORS; APPOINTMENT OF CERTAIN OFFICERS; COMPENSATORY ARRANGEMENTS OF CERTAIN OFFICERS.

 

On February 11, 2025, the Compensation and Governance Committee (the “Committee”) of the Board of Directors (the “Board”) of MBIA Inc. (the “Company”), and the Board, approved the grant of special one-time cash retention awards to four of the Company’s named executive officers (the “Executives”), made under the Company’s Amended and Restated Omnibus Incentive Plan in the aggregate amount of $10,175,000, with the details of the grant set forth in the table below.

 

The Board designed the retention awards to enhance the prospect that the Executives remain with the Company and to promote continuity and stability. The Company and its shareholders are in an unusual situation where its operating companies’ insured portfolios are in runoff, but the ongoing monitoring and remediation of the portfolios is critical to maximizing shareholder value. The Board strongly believes that the Company’s current leadership team possesses unique skills and experience which are essential to the achievement of its priorities, including the generation of shareholder value:

•
The Executives continue to work towards mitigating losses at the Company’s operating subsidiaries, National Public Finance Guarantee Corp. (“National”) and MBIA Insurance Corporation (“MBIA Insurance”), while simultaneously maximizing recoveries on paid insurance claims and ensuring adequate liquidity for the Company.
•
Specific to National and its exposures relating Puerto Rico, it is of critical importance to the Company and to National’s policyholders that the Executives overseeing the day-to-day remediation efforts remain intact and motivated.
•
The Executives each have specialized industry knowledge, leadership and skill sets, and important and irreplaceable institutional knowledge that positively impacts the Company’s operations, and will be instrumental in helping it navigate the current challenging operating environment.

Absent a change of circumstances described further below, the retention awards will not vest for over 3 years from grant – until 2028 – thus ensuring that the Executives will see no benefit from these awards until such time. The retention awards will also be subject to the other restrictive conditions set forth in the Amended and Restated Omnibus Incentive Plan. Details of the retention awards are as follows:

 

Name

Title

Total Cash Award

Daniel M. Avitabile

AVP and MBIA Insurance’s President and Chief Risk Officer

1,950,000

Adam T. Bergonzi

AVP and National’s Chief Risk Officer

2,775,000

William C. Fallon

Chief Executive Officer

3,500,000

Christopher H. Young

AVP and National’s Chief Financial Officer

1,950,000

 

 

Under the terms of the retention awards, each Executive’s retention award will cliff vest on March 1, 2028 (the “Vesting Date”), provided the Executive remains continuously employed by the Company through such date. However, if, prior to the Vesting Date, the Executive experiences a “qualifying termination”, then the awarded cash will vest at such time. A “qualifying termination” means a termination of an Executive’s employment (a) due to his death or disability, (b) by the Company or its successor in the event of a change of control, without cause, or (c) with the approval of the Board or the board of directors of the Company’s successor in the event of a change of control.

 

Any retention award that has not vested as of the Vesting Date will be forfeited. Such forfeiture will occur, for example, upon an Executive’s voluntary resignation or retirement (other than in connection with a “qualifying termination”), or the Company’s termination of the Executive’s employment for cause.

 

 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

MBIA INC.

 

 

 

 

Date:

February 13, 2025

By:

/s/ William J. Rizzo

 

 

 

William J. Rizzo
Co-General Counsel

 

v3.25.0.1
Document And Entity Information
Feb. 13, 2025
Cover [Abstract]  
Document Type 8-K
Amendment Flag false
Document Period End Date Feb. 13, 2025
Entity Registrant Name MBIA Inc.
Entity Central Index Key 0000814585
Entity Emerging Growth Company false
Entity File Number 001-09583
Entity Incorporation, State or Country Code CT
Entity Tax Identification Number 06-1185706
Entity Address, Address Line One 1 Manhattanville Road
Entity Address, Address Line Two Suite 301
Entity Address, City or Town Purchase
Entity Address, State or Province NY
Entity Address, Postal Zip Code 10577
City Area Code 914
Local Phone Number 273-4545
Entity Information, Former Legal or Registered Name Not Applicable
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock
Trading Symbol MBI
Security Exchange Name NYSE
MBIA (NYSE:MBI)
Historical Stock Chart
From Jan 2025 to Feb 2025 Click Here for more MBIA Charts.
MBIA (NYSE:MBI)
Historical Stock Chart
From Feb 2024 to Feb 2025 Click Here for more MBIA Charts.