This excerpt taken from the MTG DEF 14A filed Apr 11, 2008.
New Plan Benefits
The table below shows awards of RSUs and restricted stock made on February 28, 2008 to our named executive officers (Messrs. Culver, Lauer, Sinks, Pierzchalski and Lane) and to the other groups described in the table. The dollar value is the number of shares or RSUs multiplied by the New York Stock Exchange closing price on the date of the awards. The awards to Messrs. Culver, Lauer, Sinks, Pierzchalski and Lane are contingent on shareholder approval of the listed goals and they have performance targets under performance goals that are listed goals.
RSUs shown in the Restricted Stock Units columns vest based on the achievement of performance targets determined by MGICs incurred loss ratio (incurred losses divided by earned premium) for its primary new insurance written; our expense ratio (expenses of insurance operations divided by net premiums written); and MGICs market share of flow new insurance written. The three performance targets are equally weighted for vesting purposes. Vesting is determined on February 10, 2009 and the next two anniversaries of that date based on performance during the prior year. The portion of the total award that may vest in each year ranges from zero to 50% but the total amount that vests cannot exceed the amount of the award. Subject to the second paragraph below, any portion of the award that has not vested on February 10, 2011 is forfeited. Dividends are not paid currently on RSUs but to the extent the RSUs vest, we will make a payment equal to the amount of dividends that would have been paid on the shares of Common Stock delivered in settlement of the RSU had those shares been outstanding from the time of the award.
Restricted equity shown in the restricted equity columns consists of restricted stock or, in the case of award recipients who were age 57 or older on February 10, 2008 or for certain recipients who reside outside the United States, RSUs. One-third of the restricted equity for Messrs. Culver, Lauer, Sinks, Pierzchalski and Lane vests on February 10, 2009 and the next two anniversaries of that date depending on whether a performance target determined by the sum of the incurred loss ratio and the expense ratio described in the prior paragraph is met. Any of this restricted equity not vested as of February 10, 2011, may vest over the next two years if the performance target is satisfied during such years. Subject to the next paragraph, any of this restricted equity that has not vested as of February 10, 2013 will be forfeited. One-third of the restricted equity awarded to other employees vests on February 10, 2009 and the next two anniversaries of that date through continued service. For all awards described in this paragraph, dividends are paid on restricted equity at the same time as they are paid on Common Stock.
If it is not possible to determine whether the performance targets have been met on any particular vesting date, the vesting date will be extended until such determination can be made. Vesting will be accelerated in the event of the death of the award recipient or a change of control. In addition, vesting will continue for retirements on or after age 62, as described under Restricted Equity above. Mr. Lauer meets this age minimum.