DEF 14A of Mbia Inc, Mar 21, 2024

DEF 14A of Mbia Inc

Filed Mar 21, 2024 · FY20230001193125-24-073824

Open on EDGAR

  1. Summary of Board of Director Nominees

    Summary of Board of Director Nominees The following table provides summary information about each Director nominee. See page 52 for more information about each Director and the Company’s Proposal 1: Election of Directors.

  2. Summary of Board of Director Nominees

    | Name | Director Since | Independent | Committees | | | | | | | | E | FR | CG | A | | Diane L. Dewbrey Former Chair of the Board of Enventis, Inc. | 2018 | Yes | | • | C | • | | William C. Fallon CEO of MBIA Inc. | 2017 | No | • | | | | | Steven J. Gilbert Chairman of the Board of Gilbert Global Equity Partners, L.P. | 2011 | Yes | C | • | • | • | | Janice L. Innis-Thompson SVP, Corporate Litigation and Legal Operations of Nationwide Mutual Insurance Company | 2021 | Yes | | • | • | • | | Theodore Shasta Former SVP and Partner of Wellington Management Company | 2009 | Yes | • | • | • | C | | Richard C. Vaughan Former EVP and CFO of Lincoln Financial Group | 2007 | Yes | • | C | • | • |

  3. Summary of Board of Director Nominees

    E: Executive, FR: Finance and Risk, CG: Compensation and Governance, A: Audit •: Member, C: Chair

  4. Independent Directors’ compensation

    | Name | Fees Earned or Paid in Cash ($) (2) | Stock Awards ($) (3) | All Other Compensation ($) (4) | Total Compensation ($) | | Diane L. Dewbrey | 127,870 | 100,000 | 102,568 | 330,438 | | Steven J. Gilbert | 204,570 | 100,000 | 255,632 | 560,202 | | Janice L. Innis-Thompson | 117,000 | 100,000 | 102,568 | 319,568 | | Charles R. Rinehart (1) | 144,500 | 0 | 0 | 144,500 | | Theodore Shasta | 142,000 | 100,000 | 255,632 | 497,632 | | Richard C. Vaughan | 142,000 | 100,000 | 255,632 | 497,632 |

  5. Compensation Discussion & Analysis

    | Term | Meaning | | Annual Incentive | Compensation that can be earned based on performance measured over a one-year period | | Forfeit | Share awards that were given up | | Long-Term Incentive(s) | Compensation that can be earned after a period of at least three-years based on either performance measured over that period (performance-based long-term incentive awards) or continued employment (time-based long-term incentive awards) | | Lapse | Share awards that were not earned or paid due to the associated performance conditions not being achieved | | MBIA | Equivalent to MBIA Inc., the parent and holding company in which you hold shares | | MBIA Insurance | MBIA Insurance Corporation, an operating subsidiary of MBIA | | National | National Public Finance Guarantee Corporation, an operating subsidiary of MBIA | | Performance-based compensation | Compensation that is payable contingent on the achievement of associated performance conditions, i.e., annual incentive compensation and performance-based long-term incentive awards | | Target Total Compensation | The aggregate value of base salary, target annual incentive and the target value of long-term incentive awards | | Variable Compensation | Compensation that can change in value based on either the achievement of associated performance conditions, or the value of MBIA’s stock price |

  6. Pay and Performance for 2023

    | • | The 2023 annual incentive was graded at 113% of target, with a potential range of 0-150%, driven by strong performance in the liquidity and strategic elements of the annual scorecard. Individual outcomes ranged from 113% to 156% of target based on individual performance. |

  7. Highlights of Program

    | • | Qualitative and quantitative performance metrics to balance short-term and long-term priorities, and discourage excessive risk-taking |

  8. Highlights of Program

    | • | Limited discretion in Committee evaluation of NEO performance, which is measured by application of MBIA’s quantifiable strategic scorecard in determining annual incentive awards, with the CEO’s award based solely on the company scorecard |

  9. Highlights of Program

    | • | Heavy weighting towards equity compensation with five-year vesting periods, mandatory stock ownership guidelines and retention requirements beyond retirement |

  10. Highlights of Program

    | • | Compensation levels targeted at median against an appropriately sized peer group |

  11. Looking to the future

    Looking to the future While our focus remains on aligning pay with performance, we recognize that tying long-term compensation to TSR no longer aligns with the Company’s strategic objectives, in particular pursuing a sale of the Company as early as this year. Accordingly, in 2024, for the 2023 performance year, no performance based restricted shares will be awarded and all long-term incentives will be in the form of time-based restricted shares. We remain committed to maintaining the performance-oriented compensation structure which has been met with strong support in say-on-pay results. This will be reflected in the annual performance scorecard, used to determine annual incentive outcomes, and the inherent connection to the value of our stock through the use of time-based restricted share awards. We believe this adjustment to long term compensation allows the Company to maintain a means through which to retain and motivate a senior leadership team committed to success in implementing the Company’s strategic goals for the benefit of our shareholders. Given our NEOs own and have unvested shares representing 13.14% of the Company, we believe there is strong alignment of interests across management and our shareholders. We further recognize the need for the Company to reduce the ranks of its most senior leadership to reflect its needs as it continues its pursuit of strategic alternatives including streamlining the organization. To that end, the Company recently announced its separation agreement with Anthony McKiernan whose leadership as Chief Financial Officer over the past several years, and in particular with the respect to the special dividend paid to shareholders in December 2023, has been integral to the Company navigating key challenges. We do not otherwise anticipate significant changes to our compensation program in 2024. We have been diligent and forward-looking in promoting the Company’s dedication – not just to shareholders – but to all stakeholders, including its employees and the communities in which we operate. Our annual performance goals accordingly reconfirm our ongoing focus on corporate culture and human capital management as key drivers in driving successful outcomes. We continue to welcome shareholder feedback and will keep our programs, policies and practices subject to annual review. On behalf of the Compensation & Governance Committee, Diane L. Dewbrey

  12. Alignment with MBIA’s Corporate Strategies

    Alignment with MBIA’s Corporate Strategies To be successful in effectively tying pay to MBIA’s performance, it is critical that we align our compensation strategy with our overall corporate strategies. MBIA is one of the largest operators in the financial guaranty insurance industry. While our operating companies are not writing new insurance policies, our primary business has been to provide financial guarantee insurance to the United States’ public finance markets through our indirect, wholly-owned subsidiary, National. MBIA has also provided financial guarantee insurance in the international and structured finance markets through its subsidiary, MBIA Insurance. In February 2023, consistent with these areas of focus, senior management proposed a draft scorecard of corporate metrics to the Board, against which MBIA’s and its senior team’s performance in 2023 would be measured. The Board discussed the proposal at length with management during the February 2023 Board meeting, and ultimately approved the final scorecard. This scorecard identifies several broad performance categories for MBIA Inc., the holding company, National, MBIA Insurance, and the collective enterprise, with sub-goals established to measure performance within each category. The Board uses the quantitative score generated by this scorecard as the basis for evaluating and approving NEO annual incentive awards.

  13. Alignment with MBIA’s Corporate Strategies

    The 2023 scorecard is discussed in more depth in the section below labeled “Annual Incentive Awards for 2023 Performance”. In short, however, the performance metrics represented in the 2023 scorecard include the following:

  14. Compensation Practices

    | Best Practices and policies that we follow | Practices that we do not follow | | • Deliver the majority of target compensation in the form of variable pay • Tie variable pay to successful performance in areas of strategic significance • Assess performance both quantitatively and qualitatively to ensure appropriate outcomes • Cap the cash annual incentive opportunity • Use equity vehicles, and established stock ownership guidelines and stock retention requirements beyond retirement, to directly align NEO interests with those of shareholders • Phase the vesting of equity awards over a five-year period • Operate a clawback policy • Apply double-trigger for change in control payments • Prohibit short sales, hedging or pledging of our stock • Engage an external independent advisor | • Provide guaranteed bonuses • Encourage excessive risk • Provide excessive perquisites • Make decisions solely based on market data • Offer employment contracts • Grant back-dated or make-up incentive awards |

  15. Compensation Approach

    | Element and Purpose | Key Features | Performance Measures | | Base Salary To compensate executives competitively for their roles at MBIA | • Fixed pay • Informed by reference to peer group median and adjusted for, among other variables, tenure, knowledge, ability and experience • Level also takes account of scope of role • Reviewed annually | • Not applicable | | Annual Incentive Award To drive performance against annual strategic goals and reward appropriately | • Variable pay delivered in cash • Value determined based on performance against pre-defined objectives • Target values set with reference to peer group median • Actual bonus can range from 0% to 200% of target • The Committee has the ability to consider individual performance but the CEO’s 2023 award was based solely on the corporate scorecard | • Based on performance against the corporate scorecard of quantifiable objectives • Performance goals based on MBIA’s three-year tactical and strategic objectives | | Long-Term Incentive Compensation | | | | Performance-Based Shares To drive performance against critical strategic imperatives that create sustainable long-term shareholder value, align senior leader interests with shareholders and reward appropriately | • Variable pay delivered, if at all, in equity • 2022 awards made in early 2023 accounted for two-thirds of the total long- term compensation • Target values informed by reference to peer group median • Actual payout can range from 0% to 200% of target award • Earned shares vest subject to continued employment and performance and vest in equal installments on the third, fourth and fifth anniversaries of the date of grant • No performance-based shares were awarded in 2024 in respect of 2023 performance year | • Assessed against pre-established performance measures • Vesting of 2022 award made in early 2023 is based solely on absolute total shareholder return and measured over three years • Performance is assessed at the end of the three-year performance period (December 31, 2025 for the March 2023 awards) • Performance shares will be forfeited if minimum targets are not met; for instance if total shareholder return is flat or negative over the performance period | | Time-Based Shares To provide a focus on sustainable long-term shareholder value creation, align senior leader interests with shareholders, reward appropriately and retain senior leaders | • Variable pay delivered in equity • 2022 awards made in early 2023 account for one-third of the total long- term compensation • Target values informed by reference to peer group median • Awards vest subject to continued employment • Shares vest in equal installments on the third, fourth and fifth anniversaries of date of grant (annual grants) | • Continued employment (condition for vesting) • 2023 awards made in early 2024 are made solely in form of time-based restricted shares |

  16. Managing Compensation-Related Risks

    | • | The performance measures, and their relative balance, used within our incentive plans; |

  17. Managing Compensation-Related Risks

    | • | The attributes of MBIA’s compensation practices, such as pay mix and the range of potential minimum to maximum payouts; and |

  18. Managing Compensation-Related Risks

    Based on its assessment for 2023, the Committee concluded that MBIA’s compensation policies and practices do not create incentives to take risks that are reasonably likely to have a material adverse effect on MBIA, while providing adequate incentives to build sustainable long-term shareholder value. There are a number of features of our executive compensation programs that demonstrate our strong commitment to appropriately mitigating compensation-related risk which are considered as part of this assessment, and we will look at each of these in turn. Use of Discretion and Judgment. To discourage imprudent risk taking by our NEOs, when assessing outcomes under the annual incentive plan, the Committee takes account of performance against the established Company objectives, as well as a macro level view of performance and behaviors. This enables the Committee to assess not only MBIA’s accomplishments, but also how these accomplishments were achieved. If needed, the Committee can use its discretion to adjust, up or down, annual incentive awards to take into account any unanticipated or extraordinary events, or broader performance that did not align with expectations or poor risk management. Clawback. In July 2023, the Committee approved revisions to the Executive Compensation Clawback Policy that had previously been in effect since February 2013. The purpose of the revisions were to ensure the Company was compliant with the applicable listing standards in the event of a restatement. A summary of the policy can be found as Exhibit 97.1 in the Company’s Form 10-K for the period ending December 31, 2023. In summary the policy provides the Company with the authority to recover erroneously awarded compensation in the event of a financial restatement from current and former executive officers. To provide internal alignment the Committee also approved a Supplemental Executive Compensation Clawback Policy for Managing Directors. This is intended to promote ethical behavior and accountability with respect to the accuracy of financial reporting and operates on a discretionary, rather than mandatory basis, in the event of a financial restatement. Stock Ownership Guidelines. MBIA has implemented stock ownership guidelines which align senior management’s interests with those of our shareholders. Under these guidelines, certain senior employees are expected to own MBIA stock worth a value equal to a multiple of their base salary.

  19. Managing Compensation-Related Risks

    As of March 8, 2024, Mr. Fallon and Mr. McKiernan have exceeded their ownership guidelines. The other three NEOs are in the position to meet and exceed their guideline in the near term. In assessing achievement, stock owned directly and any stock held in retirement plans will be counted. Interests such as the value of unvested restricted stock or unvested stock options are not counted. Stock Holding Periods. Once an NEO has achieved his or her ownership guideline, they are permitted to divest 25% of any excess above the guidelines during any 12-month period while the individual is still employed. Individuals are also permitted to sell stock for the purpose of settling taxes on long-term incentive awards. Notably, no current NEO has ever sold any MBIA stock other than as an offset to the taxes incurred when shares vested. Upon retirement, individuals are permitted to sell one-third of his or her holdings immediately, one-third a year after termination and the final third two years after termination. This provides an ongoing interest in MBIA’s long-term performance beyond employment and reinforces the importance of proactive succession planning. This does not preclude any individual electing to maintain his or her holdings for a longer period of time. Company Policies Prohibit Hedging and/or Pledging of Company Stock. MBIA maintains rigorous anti- hedging and anti-pledging of shares policies. Specifically, MBIA’s Insider Trading Policy prohibits Directors, officers and employees from (i) engaging in hedging transactions, (ii) pledging MBIA securities as collateral, or (iii) holding MBIA securities in a margin account, without the prior approval of such transactions by the MBIA Legal Department. The MBIA Legal Department has not been requested to approve any such transactions, and has not done so, in over ten years. The Policy also prohibits directors, officers and employees from engaging in short sales or transactions involving puts, calls and other types of options in MBIA’s securities, including equity swaps and similar derivative transactions.

  20. Compensation Peer Group

    Compensation Peer Group Another integral part of our compensation governance is the Committee’s review of MBIA’s compensation programs relative to what its peers are doing in the market. When reviewing our compensation programs, while keeping a keen focus on what is in MBIA’s and shareholders’ best interests, the Committee’s understanding of market practices to assess the competitiveness and appropriateness of compensation is also an important consideration.

  21. Compensation Peer Group

    | Principles for identifying compensation peers • Operate in similar or comparable industry segments: Property and Casualty Insurance, Reinsurance • Subject to similar legal or regulatory environments • Comparable in size and scope • Competitor for talent | One of the challenges for MBIA when establishing its peer group is the limited number of directly comparable organizations. Based on the established parameters (see left), which are reviewed periodically to ensure continuing relevance, the Committee has adopted a group of companies that has been in place for several years, with any changes simply reflecting the impact of transaction activity. During 2023 the Committee reviewed the composition of the peer group. One peer company, FedNat Holding Company, was removed due to filing for Chapter 11 bankruptcy protection. The Committee determined that no suitable replacement company was available and that the 16 company peer group remained sufficiently robust. |

  22. Compensation Peer Group

    Compensation Peer Group

  23. Compensation Peer Group

    | • Ambac Financial • Argo Group International • Assured Guaranty • Employers Holdings • FedNat Holdings* • Global Indemnity Limited • Greenlight Capital Re • HCI Group • James River Group Holdings | • Kinsale Capital Group • MGIC Investment • ProAssurance Corp. • RLI Corp. • SiriusPoint Ltd. • United Insurance Holdings • Universal Insurance Holdings • White Mountains Insurance |

  24. Compensation Peer Group

    | * Included in the 2022 group used to inform 2023 compensation decisions, but removed during 2023 and as such was not used to inform 2024 compensation decisions. |

  25. Compensation Peer Group

    We consider it important to evaluate ourselves against a robust peer group that is large enough to withstand potential changes to the composite companies. MBIA ranked between the lower quartile and the median on assets and below the lower quartile on market capitalization and revenue at the time of our market compensation review in 2023. For roles other than the Chief Executive Officer and Chief Financial Officer, the Committee also considers data for industry companies in published compensation surveys.

  26. An Overview of Performance in 2023

    An Overview of Performance in 2023 In 2023, following a year in which the Company experienced an 18% decrease in its share value but also made meaningful progress in remediating National’s exposure to Puerto Rico, the Company advanced its pursuit of strategic alternatives, ultimately returning value to its shareholders that culminated in an extraordinary dividend of $8 per share paid on December 22, 2023. This extraordinary dividend, funded following NYDFS’s approval of a $550 million dividend from National is the first dividend to shareholders since 2007. The Company also retained a portion of the dividend from National, together with a $97 million as of right dividend received from National in November 2023, to significantly bolster the Company’s liquidity. For its core operating objectives, the Company is focused on (i) ensuring that adequate liquidity exists at the holding company to satisfy all outstanding obligations, (ii) maximizing the economics of National’s existing insured portfolio through effective surveillance and remediation activity, and by managing its investment portfolio, and (iii) satisfying claims by MBIA Insurance policyholders, taking all prudent steps to maximize recoveries for its senior lenders, and reducing and mitigating potential losses on its insurance exposures. In 2023, satisfaction of these goals was largely focused on the Company’s pursuit of a special dividend from National, as discussed above, and ongoing efforts to remediate National’s final significant troubled Puerto Rico exposure, PREPA. National entered into an Amended Plan Support Agreement with the Financial Oversight Management Board (“Oversight Board”) in August 2023 that supports a reorganization plan that would resolve PREPA’s Title III proceeding, which is scheduled for confirmation proceedings in March 2024. No specific outcome can be guaranteed. MBIA Insurance was successful in collaborating with certain transaction parties to terminate a significant portion of its obligations, which, along with certain scheduled amortization, resulted in a decrease in its insured portfolio by over 15%. This success, however, was offset by the failure to secure material recoveries on prior Zohar credit payments. When these developments and others were measured against the Company’s annual performance scorecard, as discussed further below, performance for the period ended December 31, 2023 resulted in an annual incentive scorecard achievement at 113% of target. The compensation of our NEOs in 2023 is explained in the following sections and in the Summary Compensation Table that follows.

  27. Base Salary

    Base Salary Base salaries are generally set based on the job content of each position, informed by salary data for comparable positions within our compensation peer group. From time to time, adjustments are also made based on the executive’s experience, performance and potential. The Committee generally targets base salaries for the NEOs around the market median for executives in similar positions within the compensation peer group. The increases approved in respect of Mr. Avitabile and Mr. Young reflect their first salary increases since 2017.

  28. 2023 Annual Incentive

    2023 Annual Incentive The annual incentive is a performance bonus, paid in cash, which is designed to compensate NEOs for progress against MBIA’s shorter-term tactical and strategic objectives.

  29. Annual Incentive Awards for 2023 Performance

    Annual Incentive Awards for 2023 Performance The 2023 annual incentive for NEOs, as well as other associates at MBIA more broadly, is based on a scorecard of performance in four key areas, discussed in detail below: performance in our two operating subsidiaries, National (15% of total score) and MBIA Insurance (10%); performance at the corporate holding company level (10%); and enterprise-wide performance (65%). The objectives in each of these areas, along with the underlying performance targets, align to MBIA’s shorter-term tactical and strategic plan, providing direct alignment to our business strategy. The table below reflects the outcome for the scorecard for 2023, including the four areas and underlying performance objectives. Each area and goal had an associated weighting, as noted, which was used to determine the overall score under the plan, and the chart below reflects the weight and performance level assigned to each goal. The goals have been identified as strategic priorities, and are appropriate for inclusion in the annual incentive plan as they focus on areas that are of critical importance to the value proposition of shareholders, and on which senior leaders can take action today.

  30. 2023 Annual Incentive Scorecard

    2023 Annual Incentive Scorecard

  31. 2023 Annual Incentive Scorecard

    | | Below Target | Target | Above Target | Overall % of Target | | National (15%) | | | | 80% | | Portfolio Management and Remediation of Troubled Credits | • | | | | | MBIA Insurance Corporation (10%) | | | | 69% | | Portfolio Management and Remediation of Troubled Credits | • | | | | | Corporate Segment (10%) | | | | 150% | | MBIA Inc. Liquidity | | | • | | | Enterprise Objectives (65%) | | | | 122% | | Evaluation and Pursuit of Strategic Alternatives (35%) | | | • | | | ABV (10%) | • | | | | | Expense Management: Consolidated Operating Expenses (5%) | • | | | | | People Management (15%) | | | • | | | Overall Formulaic Outcome | | | | 113% |

  32. 2023 Annual Incentive Scorecard

    Performance highlights in each of the four areas were as follows:

  33. 2023 Annual Incentive Scorecard

    | National | MBIA Insurance Corporation | | • Scoring for portfolio management and remediation of troubled credits in National’s portfolio is largely focused on outcomes related PREPA, as well as for collective general developments. A final outcome for PREPA remains to be determined • As discussed earlier in this CD&A, the Company materially advanced its efforts to secure a definitive outcome on PREPA by entering into an agreement to resolve its claims in that proceeding, which agreement was subsequently incorporated into a PREPA reorganization plan. | • Continued reduction in distressed insured exposure, which, along with certain scheduled amortization, resulted in further runoff of Corp.’s insured portfolio by over 15%. • Success above was offset by failure to secure material recoveries on prior Zohar credit payments. Efforts to monetize existing assets arising from the Zohar payments will continue during 2024. | | Corporate Segment | Enterprise Objectives | | • Liquidity benefits from higher than expected dividends from National and lower net interest swap payments led to a position of excess to target liquidity, enhancing Company ability to satisfy obligations during the strategic plan period, and leading to a score above target against the Company’s goals | • The Company accomplished above target its plans to begin pursuit of strategic alternatives. After pausing its pursuit of a sale of the Company, the Company sought and received NYDFS approval of an $550 million extraordinary dividend from National. The Company distributed an $8 per share dividend to shareholders on December 22, 2023. • The Company’s Adjusted Book Value (a non-GAAP measure discussed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023) per share as of year-end 2023 was $25.70 (before adjusting for the $8 per share dividend to shareholders), versus $28.73 as of year-end 2022, underperforming the target of $28.14 approved by the Board in February 2023. Target is set with an expectation of a reduction in year-over-year ABV, given the Company’s decision to cease pursuing new business, but insurance losses at its operating companies exceeded forecasts built into the ABV target calculation. • In a year in which management and retention of key employees was a particular focus of the Committee, particularly given the initiation of a strategic alternative process, the Company scored above target on the People Management objective. • Consolidated Operating Expenses modestly exceeded Plan and resulted in a score below target. |

  34. 2023 Annual Incentive Scorecard

    In 2023, target bonus opportunities for the NEOs were as set forth below. The maximum bonus opportunity was capped at two-times the target opportunity. Company performance against its annual scorecard, which establishes the default amount of NEO annual incentive compensation, was measured at 113% of target. Having reviewed individual performance and contributions during 2023, the Chief Executive Officer recommended, and the Committee approved, individual performance modifiers for Mr. McKiernan, Mr. Bergonzi and Mr. Young. This reflected their significant work and achievements in relation to the extraordinary dividend payment and restructuring of PREPA. The following table reflects the resulting annual incentive awards in respect of 2023 performance for our NEOs:

  35. 2023 Annual Incentive Scorecard

    | Named Executive Officer | 2023 Bonus Target % (of Base Salary) | 2023 Bonus Target | 2023 Actual Bonus Paid | 2023 Bonus Paid as a % of Target | | William C. Fallon | 133% | $1,200,000 | $1,356,000 | 113% | | Anthony McKiernan | 120% | $600,000 | $878,000 | 146% | | Adam T. Bergonzi | 120% | $600,000 | $878,000 | 146% | | Daniel M. Avitabile | 108% | $350,000 | $395,500 | 113% | | Christopher H. Young | 108% | $350,000 | $545,500 | 156% |

  36. 2023 Long-Term Incentive Awards

    2023 Long-Term Incentive Awards Historically, long-term incentives for the NEOs have been made in a combination of performance-based share awards (two-thirds of the award) and time-based share award (one-third of the award). For the awards made in 2023, for the 2022 performance year, this continued to be the case. This mix is intended to align NEOs with delivering sustainable shareholder value creation, while linking pay to MBIA performance. The annual target grant date value of the long-term incentive awards for our CEO was 175% of base salary and, for our other NEOs, 150% of base salary. As discussed further below, the awards made in 2024 for the 2023 performance year were made solely in the form of time-based share awards. 2023 Performance-Based Share Awards. Performance-based share awards are made in the form of MBIA equity. Vesting will be determined based on company value, which provides direct alignment with the shareholder experience of value creation, assessed via absolute total shareholder return (TSR) over a three-year period ending on December 31, 2025. The table below sets out the associated performance requirements for TSR for awards made in March 2023, along with the corresponding percentage of shares that can be earned, ranging from 0% to 200% of the target award.

  37. 2023 Long-Term Incentive Awards

    | | Stock Price as of 12/31/2022 | Percentage of shares earned at the end of the three-year performance period (December 31, 2025) | | | | | | | | | | | | 0% | 25% | 50% | 75% | 100% | 125% | 150% | 175% | 200% | | Annualized TSR | $12.85 | 0.0% | 2.0% | 4.0% | 6.0% | 8.0% | 10.0% | 12.0% | 14.0% | 16.0% |

  38. 2023 Long-Term Incentive Awards

    TSR is the change in the value of the common stock over the three-year period, taking into account both stock price appreciation and the payment of dividends if applicable. TSR will be calculated on a compound annualized basis over the three-year period. The beginning stock price is the closing share price as of December 31, 2022. The ending stock price will be the average stock price over the 60 trading days preceding and including the last day of the performance period. Straight- line interpolation will apply to performance levels between the TSR values. The following performance-based share awards were made with these conditions to NEOs in March 2023:

  39. 2023 Long-Term Incentive Awards

    | Named Executive Officer | Target Award Value ($) | Target Award Value (% of 2022 Base Salary) | Number of Shares Awarded | | William C. Fallon | $1,050,000 | 117% | 67,163 | | Anthony McKiernan | $500,000 | 100% | 31,982 | | Adam T. Bergonzi | $500,000 | 100% | 31,982 | | Daniel Avitabile | $325,000 | 100% | 20,789 | | Christopher H. Young | $325,000 | 100% | 20,789 |

  40. 2023 Long-Term Incentive Awards

    The performance period for these awards will conclude on December 31, 2025, with the vesting of any shares that have been earned taking place equally on the third, fourth and fifth anniversary of the date of grant. 2022 Time-Based Share Awards. Time-based share awards are made in the form of MBIA equity and will vest in equal installments on the third, fourth and fifth anniversaries of the date of grant. The following time-based share awards were made to NEOs during 2023:

  41. 2023 Long-Term Incentive Awards

    | Named Executive Officer | Target Award Value ($) | Target Award Value (% of 2022 Base Salary) | Number of Shares Awarded | | William C. Fallon | $525,000 | 58% | 42,135 | | Anthony McKiernan | $250,000 | 50% | 20,064 | | Adam T. Bergonzi | $250,000 | 50% | 20,064 | | Daniel Avitabile | $162,500 | 50% | 13,042 | | Christopher H. Young | $162,500 | 50% | 13,042 |

  42. 2023 Long-Term Incentive Awards

    Pay for performance – Exceeding Target on 2021 Performance Shares. As of December 31, 2023, the end of the three-year performance period for performance-based share awards granted to NEOs in 2021, the TSR performance target was exceeded, resulting in a payout of 118% of target. This outcome reflected 31.1% TSR growth (9.46% on annualized basis) over the three-year performance period. The table below shows the number and value of performance-based shares awarded on the grant date, and the number and value of performance-based shares earned, as of December 31, 2023.

  43. 2023 Long-Term Incentive Awards

    | Named Executive Officers | Performance Shares Granted (#) | Grant Date Value of Performance Shares ($) | Shares Earned (#) | Value Earned ($) | | William C. Fallon | 117,146 | 1,050,000 | 138,232 | 845,980 | | Anthony McKiernan | 55,784 | 500,000 | 65,825 | 402,849 | | Adam T. Bergonzi | 50,205 | 450,000 | 59,242 | 362,561 | | Daniel M. Avitabile | 36,259 | 325,000 | 42,786 | 261,850 | | Christopher H. Young | 36,259 | 325,000 | 42,786 | 261,850 |

  44. 2023 Long-Term Incentive Awards

    The results for previous year performance awards varied, ranging from 0% to 176% of target over the last four years. This diversity in NEO performance share experience re-affirms the Company’s commitment to tying the experience of its NEOs to those of the Company’s shareholders.

  45. 2024 Long-Term Incentive Awards

    2024 Long-Term Incentive Awards Long-term incentive awards made to each of the NEOs in early 2024 (for the 2023 performance year) were comprised entirely of time-based shares. The annual target grant date value of the long-term incentive awards for our CEO and NEOs are unchanged at 175% of base salary and 150% of base salary, respectively. Performance-based restricted shares were not awarded as the Committee recognizes that tying long term compensation to TSR no longer aligns with the Company’s strategic objectives, in particular pursuing a sale of the Company as early as this year.

  46. Other Elements of Compensation

    | a) | A money-purchase pension plan whereby the Company contributes each year an amount equal to 10% of earned salary and annual bonus and |

  47. Other Elements of Compensation

    | b) | A 401(k) plan whereby plan participants can contribute up to 25% of earned salary and annual bonus on a pre-tax and/or Roth after-tax basis, with the Company matching participants’ contributions up to 5% of earned salary and annual bonus. |

  48. Other Elements of Compensation

    The Company’s non-qualified deferred compensation and excess benefit retirement plan provides participants with benefits that are in excess of those amounts that can be provided within the qualified plans or that otherwise do not meet IRS requirements. Participant contributions to this plan are tax deferred until the time of distribution. The Company gives executives the benefit of this non-qualified plan because we believe that all eligible employees should receive proportionate contributions to their pension and retirement plans. For compensation awarded for the 2023 performance year, non-qualified plan participants are eligible to receive Company pension contributions based on aggregate salary and bonus compensation of up to $2.0 million. Change In Control, Termination and Retirement Arrangements. In 2006, the Committee adopted a Key Employee Employment Protection Plan (the “KEEP Plan”), the purpose of which is to assure the Company of the services of key executives during a change in ownership or control of the Company, and to provide these executives with financial assurances so they can focus on their responsibilities without distraction and can exercise their judgment without bias due to personal circumstances. Mr. Fallon is covered under the KEEP Plan. The Company does not intend to cover any other executives under the KEEP Plan in the future. In addition to the KEEP Plan, the Company’s compensation and benefit plans provide certain compensation payments and benefits due to retirement and under various other termination events, which are described under “Executive compensation tables – Potential payments upon termination or change in control as of December 31, 2023.” Perquisites. MBIA does not provide any perquisites to current NEOs or any perquisites in connection with any severance or retirement agreements.

  49. CEO Pay Ratio

    CEO Pay Ratio As is permitted under the SEC rules, to determine our median employee we used 2023 total cash compensation as our consistently applied compensation measure, which we calculated as the sum of salary paid in 2023 and cash incentive bonus paid for 2023 performance. Excluding our CEO, we examined a total of 60 employees as of the determination date of December 31, 2023 whether employed on a full-time or part-time basis. We believe the use of total cash compensation for all employees is a consistently applied compensation measure. After identifying the median employee based on total cash compensation, we calculated annual total compensation for such employee using the same methodology we use for our named executive officers as set forth in the 2023 Summary Compensation Table in this proxy statement. For 2023, the annual total compensation of our median employee, the annual total compensation of our CEO (pursuant to the methodology described above) and the resulting pay ratio are shown in the table below.

  50. CEO Pay Ratio

    | | Annual Total Compensation | | CEO Annual Total Compensation | $17,140,688 | | Median Employee Annual Total Compensation | $289,854 | | CEO Pay Ratio | 59:1 |

  51. Summary compensation table for 2023

    Summary compensation table for 2023

  52. Summary compensation table for 2023

    | Name & principal position (a) | Year (b) | Salary (c) | Stock Awards (d) (1) | Non-equity incentive plan compensation (e) (2) | All other compensation (f) (3) | Total compensation (g) | | William C. Fallon | 2023 | 900,000 | 1,575,000 | 1,356,000 | 13,309,688 | 17,140,688 | | Chief Executive Officer | 2022 | 900,000 | 1,575,000 | 1,224,000 | 306,800 | 4,005,800 | | | 2021 | 900,000 | 1,575,000 | 1,236,000 | 309,800 | 4,020,800 | | Anthony McKiernan | 2023 | 500,000 | 750,000 | 878,000 | 6,550,000 | 8,678,000 | | EVP and Chief Financial Officer | 2022 | 500,000 | 750,000 | 612,000 | 190,700 | 2,052,700 | | | 2021 | 500,000 | 750,000 | 618,000 | 181,600 | 2,049,600 | | Adam T. Bergonzi | 2023 | 500,000 | 750,000 | 878,000 | 6,356,363 | 8,484,363 | | AVP and National’s Chief Risk Officer | 2022 | 491,667 | 675,000 | 612,000 | 160,713 | 1,939,380 | | | 2021 | 450,000 | 675,000 | 656,200 | 154,440 | 1,935,640 | | Daniel M. Avitabile | 2023 | 325,000 | 487,500 | 395,500 | 4,318,018 | 5,526,018 | | AVP and MBIA Insurance’s President and | 2022 | 325,000 | 487,500 | 357,000 | 124,575 | 1,294,075 | | Chief Risk Officer | 2021 | 325,000 | 487,500 | 360,500 | 115,100 | 1,288,100 | | Christopher H. Young | 2023 | 325,000 | 487,500 | 545,500 | 4,328,018 | 5,686,018 | | AVP and National’s Chief Financial Officer | 2022 | 325,000 | 487,500 | 357,000 | 109,575 | 1,279,075 | | | 2021 | 325,000 | 487,500 | 460,500 | 105,100 | 1,378,100 |

  53. Summary compensation table for 2023

    | (1) The amounts shown represent the grant date value of restricted stock awards that were granted to each of the NEOs on March 3, 2023. The values shown are in accordance with Financial Accounting Standards Board (“FASB”) Topic Accounting Standards Codification (“ASC”) 718. |

  54. Summary compensation table for 2023

    On March 3, 2023, the Board approved the grant date target value of restricted stock awards under the MBIA Inc. 2005 Omnibus Incentive Plan (formerly the MBIA Inc. 2005 Omnibus Incentive Plan) with the target value equal to 175% of our CEO’s and 150% of the other NEO’s respective base salaries in 2022. The award was comprised of a combination of time- and performance-based restricted shares, with one-third in the form of time-based restricted stock and two-thirds of the award being in the form of performance-based restricted stock as determined by the grant date value. The actual amount realized by the NEOs, if any, of time-based restricted stock would depend upon the value of our stock on the vesting dates. The actual amount realized by the NEOs, if any, of performance-based restricted stock will depend upon shares earned based on performance relative to the performance conditions set forth in the award and the value of our stock on the vesting dates. For reference, if the performance-based shares were earned at the maximum level of company performance, which is 200% of target, the total stock awards grant date values would be: Mr. Fallon $2,625,000, Mr. McKiernan $1,250,000, Mr. Bergonzi $1,250,000, Mr. Avitabile $812,500 and Mr. Young $812,500. For a description of the stock valuations, see Note 15 to our consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2023. See the CD&A and the “Grants of plan-based awards in 2023” table for an explanation and further details of the awards.

  55. Summary compensation table for 2023

    | (2) The amounts shown represent cash performance bonuses paid on February 28, 2024 for the 2023 performance year. See the CD&A for an explanation of the 2023 bonus awards. |

  56. Summary compensation table for 2023

    | (3) The amounts shown in the ‘All other compensation’ for 2023 mainly reflects the $8 cash dividend paid to the NEO’s on all unvested and outstanding time-based and performance-based restricted stock (see following table for details). There were no other perquisites paid on behalf of the NEOs in 2023. |

  57. Summary compensation table for 2023

    | Name | Dividends paid in 2023 ($) | Company contributions made to the pension and 401k retirement plans in 2023 ($) | Company contributions made to the non-qualified retirement plan in 2023 ($) | All other compensation ($) | | William C. Fallon | 13,003,488 | 45,499 | 260,701 | 13,309,688 | | Anthony McKiernan | 6,382,600 | 36,333 | 131,067 | 6,550,000 | | Adam T. Bergonzi | 6,185,976 | 47,000 | 123,387 | 6,356,363 | | Daniel M. Avitabile | 4,215,368 | 41,750 | 60,900 | 4,318,018 | | Christopher H. Young | 4,215,368 | 41,750 | 70,900 | 4,328,018 |

  58. Grants of plan-based awards in 2023

    Grants of plan-based awards in 2023

  59. Grants of plan-based awards in 2023

    | | Grant date (b) | Estimated future payouts under non-equity incentive plan awards | | | Estimated payouts under equity plan awards (3) | | | All other stock awards: number of shares/ units (#) (i) (4) | Grant date fair value of stock awards ($) (j) (5) | | Name (a) | | Thresh- old ($) (c) | Target ($) (d) (1) | Maximum ($) (e) (2) | Thresh- old (#) (f) | Target (#) (g) | Maximum (#) (h) | | | | William C. Fallon | - | - | 1,200,000 | 2,400,000 | - | - | - | - | - | | | Mar 3, 2023 | - | - | - | - | 67,163 | 134,326 | - | 1,050,000 | | | Mar 3, 2023 | - | - | - | - | - | - | 42,135 | 525,000 | | Anthony McKiernan | - | - | 600,000 | 1,200,000 | - | - | - | - | - | | | Mar 3, 2023 | - | - | - | - | 31,982 | 63,964 | - | 500,000 | | | Mar 3, 2023 | - | - | - | - | - | - | 20,064 | 250,000 | | Adam T. Bergonzi | - | - | 600,000 | 1,200,000 | - | - | - | - | - | | | Mar 3, 2023 | - | - | - | - | 31,982 | 63,964 | - | 500,000 | | | Mar 3, 2023 | - | - | - | - | - | - | 20,064 | 250,000 | | Daniel M. Avitabile | - | - | 350,000 | 700,000 | - | - | - | - | - | | | Mar 3, 2023 | - | - | - | - | 20,789 | 41,578 | - | 325,000 | | | Mar 3, 2023 | - | - | - | - | - | - | 13,042 | 162,500 | | Christopher H. Young | - | - | 350,000 | 700,000 | | - | - | - | - | | | Mar 3, 2023 | - | - | - | - | 20,789 | 41,578 | - | 325,000 | | | Mar 3, 2023 | - | - | - | - | - | - | 13,042 | 162,500 |

  60. Grants of plan-based awards in 2023

    | (1) The amounts shown represent the 2023 cash performance bonus target opportunity for each of the NEOs, and do not reflect the actual payment of any bonus to the NEOs for 2023. The actual bonuses paid for 2023 are reflected in the “Summary compensation table for 2023” under column (e). |

  61. Grants of plan-based awards in 2023

    | (2) The amounts shown represent the 2023 cash performance bonus maximum opportunity for each of the NEOs as determined by the achievement of Company objectives set forth at the beginning of the year and individual performance. The maximum bonus opportunity represents 200% of target. |

  62. Grants of plan-based awards in 2023

    | (3) On March 3, 2023, the Board approved the grant date target value of restricted stock awards under the Amended and Restated MBIA Inc. Omnibus Incentive Plan with the target value equal to 175% of our CEO’s and 150% of the other NEO’s respective base salaries in 2022. The award consisted of a combination of time- and performance-based restricted shares, with one-third in the form of time-based restricted stock (described in footnote 4) and two-thirds of the award being in the form of performance-based restricted stock (described below) as determined by the grant date value. The number of time-based shares awarded was the grant date value divided by the closing stock price on the date of grant. The number of performance- based shares awarded was the grant date value, assuming target performance, divided by the market value per share determined using a binomial lattice model in accordance with accounting guidance for share-based awards that contain market performance conditions. |

  63. Grants of plan-based awards in 2023

    The performance-based share portion of the award was awarded at target. The target performance score is 100% with the percentage of performance- based shares that can be earned between 0% and 200%. The performance score will be based on TSR over the three-year performance period starting on December 31, 2022 and ending on December 31, 2025. TSR will take into account both stock price appreciation and dividends paid by the Company, if applicable. The beginning stock price is the closing share price on December 31, 2022. The ending stock price will be the average stock price over the 60 trading days preceding and including the last day of the performance period. The number of performance-based shares earned will be equal to the number of performance-based shares granted multiplied by the performance score. Straight-line interpolation will apply to performance levels between the TSR values. Earned shares will vest in equal installments on the third, fourth and fifth anniversary of the grant date; provided, the NEO is continuously employed on the vesting date and does not breach the restrictive covenants prior to the applicable vesting date. Post-employment restrictive covenants may include a non-compete and/or non-solicitation covenant. Notwithstanding the vesting provisions noted above, earned performance shares will become vested upon a change in control or at the end of the performance period in the event of the NEO’s death or disability. Upon the NEO’s retirement or the company’s termination of the NEO’s employment without cause, performance shares will be earned at the end of the performance period and shall remain outstanding and vest on the award’s vesting dates, subject to the restrictive covenants. Performance-based shares not earned will be forfeited. See the CD&A for a table showing the performance measure values relative to percentage scores ranging from 0%-200%. For reference, if the maximum level of company performance is achieved resulting in 200% of the target being issued, the grant date values of the performance-based shares would be: Mr. Fallon $2,100,000, Mr. McKiernan $1,000,000, Mr. Bergonzi $1,000,000, Mr. Avitabile $650,000 and Mr. Young $650,000.

  64. Grants of plan-based awards in 2023

    | (4) In connection with the March 3, 2023 restricted stock awards noted in footnote 3, the time-based shares will vest in equal installments on the third, fourth and fifth anniversary of the grant date, subject to the certain vesting conditions as noted in footnote 3. Upon a change in control, the NEO’s death or disability, or the company’s termination of the NEO’s employment without cause; time-based shares will immediately vest. Upon the NEO’s retirement, shares will remain outstanding, subject to the restrictive covenants as noted in footnote 3, and shall vest on the award’s vesting dates. |

  65. Grants of plan-based awards in 2023

    | (5) The amounts shown represent the grant date value of the restricted shares. The values shown are in accordance with Financial Accounting Standards Board (“FASB”) Topic Accounting Standards Codification (“ASC”) 718. For a description of the stock valuation, see Note 15 to our consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2023. |

  66. Outstanding equity awards as of December 31, 2023

    Outstanding equity awards as of December 31, 2023

  67. Outstanding equity awards as of December 31, 2023

    | Name (a) | Number of shares or units of stock that have not vested (#) (b) | Market value of shares or units of stock that have not vested ($) (c) (1) | Equity incentive plan awards: number of unearned shares, units or other rights that have not vested (#) (d) | Equity incentive plan awards: market or payout value of unearned shares, units or other rights that have not vested ($) (e) (1) | | William C. Fallon | 1,000,000(2) | 6,120,000 | - | - | | | 16,432(3) | 100,564 | - | - | | | - | - | 45,422(4) | 277,983 | | | 44,136(5) | 270,112 | - | - | | | - | - | 107,920(6) | 660,470 | | | 69,907(7) | 427,831 | - | - | | | - | - | 138,232(8) | 845,980 | | | 39,414(9) | 241,214 | - | - | | | - | - | 75,761(10) | 0 | | | 42,135(11) | 257,866 | - | - | | | - | - | 67,163(12) | 0 | | Anthony McKiernan | 500,000(2) | 3,060,000 | - | - | | | 7,824(3) | 47,883 | - | - | | | - | - | 21,629(4) | 132,369 | | | 21,017(5) | 128,624 | - | - | | | - | - | 51,391(6) | 314,513 | | | 33,289(7) | 203,729 | - | - | | | - | - | 65,825(8) | 402,849 | | | 18,769(9) | 114,866 | - | - | | | - | - | 36,076(10) | 0 | | | 20,064(11) | 122,792 | - | - | | | - | - | 31,982(12) | 0 | | Adam T. Bergonzi | 500,000(2) | 3,060,000 | - | - | | | 7,042(3) | 43,097 | - | - | | | - | - | 19,466(4) | 119,132 | | | 18,915(5) | 115,760 | - | - | | | - | - | 46,252(6) | 283,062 | | | 29,960(7) | 183,355 | - | - | | | - | - | 59,242(8) | 362,561 | | | 16,892(9) | 103,379 | - | - | | | - | - | 32,469(10) | 0 | | | 20,064(11) | 122,792 | - | - | | | - | - | 31,982(12) | 0 | | Daniel M. Avitabile | 333,333(2) | 2,039,998 | - | - | | | 5,086(3) | 31,126 | - | - | | | - | - | 14,059(4) | 86,041 | | | 13,661(5) | 83,605 | - | - | | | - | - | 33,404(6) | 204,432 | | | 21,638(7) | 132,425 | - | - | | | - | - | 42,786(8) | 261,850 | | | 12,200(9) | 74,664 | - | - | | | - | - | 23,450(10) | 0 | | | 13,042(11) | 79,817 | - | - | | | - | - | 20,789(12) | 0 |

  68. Outstanding equity awards as of December 31, 2023

    | Name (a) | Number of shares or units of stock that have not vested (#) (b) | Market value of shares or units of stock that have not vested ($) (c) (1) | Equity incentive plan awards: number of unearned shares, units or other rights that have not vested (#) (d) | Equity incentive plan awards: market or payout value of unearned shares, units or other rights that have not vested ($) (e) (1) | | Christopher H. Young | 333,333(2) | 2,039,998 | - | - | | | 5,086(3) | 31,126 | - | - | | | - | - | 14,059(4) | 86,041 | | | 13,661(5) | 83,605 | - | - | | | - | - | 33,404(6) | 204,432 | | | 21,638(7) | 132,425 | - | - | | | - | - | 42,786(8) | 261,850 | | | 12,200(9) | 74,664 | - | - | | | - | - | 23,450(10) | 0 | | | 13,042(11) | 79,817 | - | - | | | - | - | 20,789(12) | 0 |

  69. Outstanding equity awards as of December 31, 2023

    | (1) The amounts shown are equal to the number of shares disclosed in the prior column multiplied by $6.12 per share, the closing market value of the shares on December 31, 2023. |

  70. Outstanding equity awards as of December 31, 2023

    | (2) The time-based restricted stock shown was granted on November 8, 2018. The awards will cliff vest on March 3, 2025 and such shares are subject to continued employment (subject to certain exceptions). |

  71. Outstanding equity awards as of December 31, 2023

    | (3) On March 5, 2019, the Board approved restricted stock awards under the Amended and Restated MBIA Inc. Omnibus Incentive Plan comprised of a combination of time- and performance-based restricted shares with one-third in the form of time-based restricted stock and two-thirds of the award being in the form of performance-based restricted stock (described in footnote 4) as determined by the grant date value. The time-based shares shown will vest on the fifth anniversary of the grant date, subject to the NEO’s continued employment on the vesting date (subject to certain exceptions). |

  72. Outstanding equity awards as of December 31, 2023

    | (4) In connection with the March 5, 2019 restricted stock awards noted in footnote 3, the performance-based restricted stock was granted at target. The target performance score is 100% with the percentage of performance-based shares that can be earned between 0% and 200%. The performance score was based on the achievement of TSR over the three-year performance period starting on December 31, 2018 and ending on December 31, 2021. TSR took into account both stock price appreciation and dividends paid by the Company, if applicable. The beginning stock price was the closing share price on December 31, 2018. The ending stock price was the average stock price over 60 trading days preceding and including the last day of the performance period. The number of performance-based shares earned was equal to the number of performance-based shares granted multiplied by the performance score. Earned shares will vest in equal installments on the third, fourth and fifth anniversary of the grant date, subject to the NEO’s continued employment on the vesting date (subject to certain exceptions). |

  73. Outstanding equity awards as of December 31, 2023

    The performance-based shares shown in column (d) represent one-third of the shares granted that were adjusted for an actual performance score of 176%. The performance results reflect a TSR value of 14.07% based on an annualized TSR for the three-year performance period that ended on December 31, 2021. The market value of these shares are shown in Column (e).

  74. Outstanding equity awards as of December 31, 2023

    | (5) On March 3, 2020, the Board approved restricted stock awards under the Amended and Restated MBIA Inc. Omnibus Incentive Plan comprised of a combination of time- and performance-based restricted shares with one-third in the form of time-based restricted stock and two-thirds of the award being in the form of performance-based restricted stock (described in footnote 6) as determined by the grant date value. The time-based shares shown will vest in equal installments on the fourth and fifth anniversary of the grant date, subject to the NEO’s continued employment on the vesting date (subject to certain exceptions). |

  75. Outstanding equity awards as of December 31, 2023

    | (6) In connection with the March 3, 2020 restricted stock awards noted in footnote 5, the performance-based restricted stock was granted at target. The target performance score is 100% with the percentage of performance-based shares that can be earned between 0% and 200%. The performance score will be based on the achievement of TSR over the three-year performance period starting on December 31, 2019 and ending on December 31, 2022. TSR will take into account both stock price appreciation and dividends paid by the Company, if applicable. The beginning stock price is the closing share price on December 31, 2019. The ending stock price will be the average stock price over 60 trading days preceding and including the last day of the performance period. The number of performance-based shares earned will be equal to the number of performance-based shares granted multiplied by the performance score. Earned shares will vest in equal installments on the third, fourth and fifth anniversary of the grant date, subject to the NEO’s continued employment on the vesting date (subject to certain exceptions). Performance-based shares not earned will be forfeited. |

  76. Outstanding equity awards as of December 31, 2023

    The performance-based shares shown in column (d) represent two-thirds of the shares granted that were adjusted for an actual performance score of 92%. The performance results reflect a TSR value of 7.37% based on an annualized TSR for the three-year performance period that ended on December 31, 2022. The market value of these shares are shown in Column (e).

  77. Outstanding equity awards as of December 31, 2023

    | (7) On March 4, 2021, the Board approved restricted stock awards under the Amended and Restated MBIA Inc. Omnibus Incentive Plan comprised of a combination of time-and performance-based restricted shares with one-third in the form of time-based restricted stock and two-thirds of the award being in the form of performance-based restricted stock (described in footnote 8) as determined by the grant date value. The time-based shares shown will vest in equal installments on each of the third, fourth and fifth anniversary of the grant date, subject to the NEO’s continued employment on the vesting date (subject to certain exceptions). |

  78. Outstanding equity awards as of December 31, 2023

    | (8) In connection with the March 4, 2021 restricted stock awards noted in footnote 7, the performance-based restricted stock was granted at target. The target performance score is 100% with the percentage of performance-based shares that can be earned between 0% and 200%. The performance score will be based on the achievement of TSR over the three-year performance period starting on December 31, 2020 and ending on December 31, 2023. TSR will take into account both stock price appreciation and dividends paid by the Company, if applicable. The beginning stock price is the closing share price on December 31, 2020. The ending stock price will be the average stock price over 60 trading days preceding and including the last day of the performance period. The number of performance-based shares earned will be equal to the number of performance-based shares granted multiplied by the performance score. Earned shares will vest in equal installments on the third, fourth and fifth anniversary of the grant date, subject to the NEO’s continued employment on the vesting date (subject to certain exceptions). Performance-based shares not earned will be forfeited. |

  79. Outstanding equity awards as of December 31, 2023

    The performance-based shares shown in Column (d) represent the number of shares granted times the actual performance score of 118%. The performance results reflect a TSR value of 9.48% based on an annualized TSR for the three-year performance period that ended on December 31, 2023. The market value of these shares are shown in Column (e).

  80. Outstanding equity awards as of December 31, 2023

    | (9) On March 3, 2022, the Board approved restricted stock awards under the Amended and Restated MBIA Inc. Omnibus Incentive Plan comprised of a combination of time- and performance-based restricted shares with one-third in the form of time-based restricted stock and two-thirds of the award being in the form of performance-based restricted stock (described in footnote 10) as determined by the grant date value. The time-based shares shown will vest in equal installments on each of the third, fourth and fifth anniversary of the grant date, subject to the NEO’s continued employment on the vesting date (subject to certain exceptions). |

  81. Outstanding equity awards as of December 31, 2023

    | (10) In connection with the March 3, 2022 restricted stock awards noted in footnote 9, the performance-based restricted stock was granted at target. The target performance score is 100% with the percentage of performance-based shares that can be earned between 0% and 200%. The performance score will be based on the achievement of TSR over the three-year performance period starting on December 31, 2021 and ending on December 31, 2024. TSR will take into account both stock price appreciation and dividends paid by the Company, if applicable. The beginning stock price is the closing share price on December 31, 2021. The ending stock price will be the average stock price over 60 trading days preceding and including the last day of the performance period. The number of performance-based shares earned will be equal to the number of performance-based shares granted multiplied by the performance score. Earned shares will vest in equal installments on the third, fourth and fifth anniversary of the grant date, subject to the NEO’s continued employment on the vesting date (subject to certain exceptions). Performance-based shares not earned will be forfeited. |

  82. Outstanding equity awards as of December 31, 2023

    The performance-based shares shown in column (d) represents the number of shares granted at target. The performance results reflect an interim TSR value of (26.05)% based on TSR annualized over the performance period that lapsed, which covers two years of the three-year period as of December 31, 2023. The TSR and payout results are subject to change based on performance over the next year. The market value for these shares are shown in Column (e), which reflects a 0% payout. For reference, if Company performance resulted in target level payouts as of December 31, 2023, the market value of the performance-based shares would be:

  83. Outstanding equity awards as of December 31, 2023

    | | Target Payout ($) | | William C. Fallon | $463,657 | | Anthony McKiernan | $220,785 | | Adam T. Bergonzi | $198,710 | | Daniel M. Avitabile | $143,514 | | Christopher H. Young | $143,514 |

  84. Outstanding equity awards as of December 31, 2023

    | (11) On March 3, 2023, the Board approved restricted stock awards under the Amended and Restated MBIA Inc. Omnibus Incentive Plan comprised of a combination of time- and performance-based restricted shares with one-third in the form of time-based restricted stock and two-thirds of the award being in the form of performance-based restricted stock (described in footnote 12) as determined by the grant date value. The time-based shares shown will vest in equal installments on each of the third, fourth and fifth anniversary of the grant date, subject to the NEO’s continued employment on the vesting date (subject to certain exceptions). |

  85. Outstanding equity awards as of December 31, 2023

    | (12) In connection with the March 3, 2023 restricted stock awards noted in footnote 11, the performance-based restricted stock was granted at target. The target performance score is 100% with the percentage of performance-based shares that can be earned between 0% and 200%. The performance score will be based on the achievement of TSR over the three-year performance period starting on December 31, 2022 and ending on December 31, 2025. TSR will take into account both stock price appreciation and dividends paid by the Company, if applicable. The beginning stock price is the closing share price on December 31, 2022. The ending stock price will be the average stock price over 60 trading days preceding and including the last day of the performance period. The number of performance-based shares earned will be equal to the number of performance-based shares granted multiplied by the performance score. Earned shares will vest in equal installments on the third, fourth and fifth anniversary of the grant date, subject to the NEO’s continued employment on the vesting date (subject to certain exceptions). Performance-based shares not earned will be forfeited. See the CD&A for a table showing the performance measure values relative to percentage scores ranging from 0%-200%. |

  86. Outstanding equity awards as of December 31, 2023

    The performance-based shares shown in column (d) represents the number of shares granted at target. The performance results reflect an interim TSR value of (32.81)% based on TSR annualized over the performance period that lapsed, which covers one year of the three-year period as of December 31, 2023. The TSR and payout results are subject to change based on performance over the next two years. The market value for these shares are shown in Column (e), which reflects a 0% payout. For reference, if Company performance resulted in target level payouts as of December 31, 2023, the market value of the performance-based shares would be:

  87. Outstanding equity awards as of December 31, 2023

    | | Target Payout ($) | | William C. Fallon | $411,038 | | Anthony McKiernan | $195,730 | | Adam T. Bergonzi | $195,730 | | Daniel M. Avitabile | $127,229 | | Christopher H. Young | $127,229 |

  88. Stock vested in 2023

    Stock vested in 2023

  89. Stock vested in 2023

    | | Stock awards | | | Name (a) | Number of shares acquired on vesting (#) (b) | Value realized on vesting ($) (c) (1) | | William C. Fallon | 155,184 | 1,930,478 | | Anthony McKiernan | 75,372 | 937,387 | | Adam T. Bergonzi | 66,863 | 831,715 | | Daniel M. Avitabile | 48,991 | 609,292 | | Christopher H. Young | 48,991 | 609,292 |

  90. Stock vested in 2023

    | (1) The amount represents the market value of the vested stock on the vesting date. |

  91. Stock vested in 2023

    MBIA Inc.

  92. Non-qualified deferred compensation in 2023

    Non-qualified deferred compensation in 2023

  93. Non-qualified deferred compensation in 2023

    | Name (a) | Executive contributions in 2023 ($) (b) (1) | Company contributions in 2023 ($) (c) (1) | Earnings (Losses) in 2023 ($) (d) (2) | Withdrawals/ distributions in 2023 ($) (e) | Balance as of 12/31/23 ($) (f) | | William C. Fallon | 189,900 | 260,701 | 1,800,537 | - | 11,050,656 | | Anthony McKiernan | 224,900 | 131,067 | 1,201,999 | - | 7,135,410 | | Adam T. Bergonzi | 44,220 | 123,387 | 1,015,672 | - | 3,449,813 | | Daniel M. Avitabile | 11,600 | 60,900 | 170,525 | - | 1,228,703 | | Christopher H. Young | 62,590 | 70,900 | 399,169 | - | 2,518,995 |

  94. Non-qualified deferred compensation in 2023

    | (1) MBIA maintains a non-qualified defined contribution retirement plan. Under this plan, MBIA contributes amounts that it is precluded from contributing to the money-purchase pension and 401(k) plans because of Internal Revenue Code limitations. The amounts contributed include both Company and NEO contributions. For compensation awarded for the 2023 performance year, non-qualified plan participants are eligible to receive Company pension contributions based on aggregate salary and bonus compensation of up to $2.0 million. The Company contributions shown in the table above include Company pension contributions made in 2023 for the 2022 performance year. NEOs become fully vested in Company contributions on the fifth year of participation in the plan. The NEO contribution amounts are included in the salary and performance bonus as reported in the “Summary compensation table for 2023” under columns (c) and (e) respectively. The Company contribution amounts are included in all other compensation as reported in the “Summary compensation table for 2023” under column (f). |

  95. Non-qualified deferred compensation in 2023

    | (2) Assets under this plan are participant-directed and employee account balances and contributions are subject to market-based returns. Plan participants may self-direct their investments among multiple investment options. The earnings (losses) shown represent the change in market value in 2023, including any dividends and interest earned during the year. |

  96. Pay Versus Performance Table and Supporting Narrative for 2023

    Pay Versus Performance Table and Supporting Narrative for 2023 The following section contains information regarding “compensation actually paid” to our Named Executive Officers (NEOs) and the relationship between those amounts and certain company performance metrics.

  97. Pay Versus Performance Table

    Pay Versus Performance Table

  98. Pay Versus Performance Table

    | Year | Summary Compensation Table Total for PEO ($) (1) | Compensation Actually Paid to PEO ($) (1) (5) | Average Summary Compensation Table Total for Non-PEO Named Executive Officers ($) (2) | Average Compensation Actually Paid to Non-PEO Named Executive Officers ($) (2) (5) | Value of Initial Fixed $100 Investment Based On: | | Net Income ($m) | Adjusted Book Value Per Share ($) (4) | | | | | | | Total Shareholder Return ($) | Peer Group Total Shareholder Return ($) (3) | | | | 2023 | 17,140,688 | 4,970,732 | 7,093,600 | 2,206,884 | 144.72 | 132.83 | (491) | 25.70 | | 2022 | 4,005,800 | (3,035,560) | 1,595,180 | (1,184,433) | 138.17 | 118.49 | (195) | 28.73 | | 2021 | 4,020,800 | 23,148,168 | 1,609,800 | 9,009,475 | 169.78 | 132.50 | (445) | 31.77 | | 2020 | 4,080,200 | (769,780) | 1,730,136 | (204,230) | 70.75 | 98.24 | (578) | 35.95 |

  99. Pay Versus Performance Table

    | (1) The Principal Executive Officer (“PEO”) for all four years is Mr. Fallon. |

  100. Pay Versus Performance Table

    | (2) For 2020, 2021 and 2022 the non-PEO NEOs includes Messrs. McKiernan, Bergonzi, Avitabile, Young and Harris. For 2023 the non-PEO NEOs includes Messrs. McKiernan, Bergonzi, Avitabile and Young. |

  101. Pay Versus Performance Table

    | (3) Peer Group used for TSR comparisons reflects the S&P Financials Index as used in Item 5 of our annual Form 10-K (total shareholder return comparison graph). |

  102. Pay Versus Performance Table

    | (4) Our company-selected measure is Adjusted Book Value, a non-GAAP measurement calculated by management for certain internal purposes, removing and adding certain components of GAAP Book Value, as described further in the Results of Operations section of Item 7 of our annual Form 10-K. |

  103. Pay Versus Performance Table

    | (5) To calculate “compensation actually paid” for our CEO and other NEOs, the “total pay” referenced in the Summary Compensation Table was adjusted only in the value of equity awards, since the Company does not have any actuarially valued pension arrangements and the value of the special dividend is included in the Summary Compensation Table pay. “Compensation actually paid” values for fiscal years 2020, 2021, and 2022 differ from those published in our March 23, 2023 Proxy Statement. These differences are a result of changes in our understanding of the assumptions and methodologies required under the SEC rule. |

  104. Pay Versus Performance Table

    | | | PEO | | | Other NEO Average | | | | | Adjustments | 2023 | 2022 | 2021 | 2020 | 2023 | 2022 | 2021 | 2020 | | Summary Compensation Table Total | 17,140,688 | 4,005,800 | 4,020,800 | 4,080,200 | 7,093,600 | 1,595,180 | 1,609,800 | 1,730,136 | | Deduction for amount reported in “Stock Awards” column of the Summary Compensation Table | 1,575,000 | 1,575,000 | 1,575,000 | 1,575,000 | 618,750 | 585,000 | 585,000 | 585,000 | | Addition of fair value at fiscal year (FY) end, of equity awards granted during the FY that remained outstanding | 763,525 | 1,430,836 | 4,374,719 | 1,175,459 | 299,956 | 531,457 | 1,624,890 | 436,601 |

  105. Pay Versus Performance Table

    | | | PEO | | | Other NEO Average | | | | | Adjustments | 2023 | 2022 | 2021 | 2020 | 2023 | 2022 | 2021 | 2020 | | Addition of change in fair value at FY end versus prior FY end for awards granted in prior FY that remained outstanding | (11,294,845) | (6,739,169) | 16,277,426 | (3,534,311) | (4,543,146) | (2,663,227) | 6,339,552 | (1,400,285) | | Addition of change in fair value at vesting date versus prior FY end for awards granted in prior FY that vested during the FY | (63,636) | (158,027) | 50,223 | (57,374) | (24,776) | (62,844) | 20,234 | (24,118) | | Deduction of the fair value at the prior FY end for awards granted in prior FY that failed to meet their vesting conditions | - | - | - | 858,754 | - | - | - | 361,564 | | Compensation Actually Paid | 4,970,732 | (3,035,560) | 23,148,168 | (769,780) | 2,206,884 | (1,184,433) | 9,009,475 | (204,230) |

  106. Pay Versus Performance Table

    No adjustments were required in respect of elements not shown in the table above. The equity awards included above comprise time-based and performance-based restricted stock. The fair values were calculated on each of the required measurement dates using assumptions derived based on criteria consistent with those used for grant date fair value calculations. The fair values of time-based restricted stock were determined based on the closing price of the Company’s common stock on the vesting dates. The measurement date fair values of performance-based stock awards, prior to the end of the performance period, were determined using a Monte Carlo fair value simulation. On the final measurement date at the end of the performance period, the fair value was determined based on the approved payout factor multiplied by the closing price of the Company stock on that date. On the vesting date (following the conclusion of the performance period for performance-based restricted stock awards), the fair value is determined based on the approved payout factor multiplied by the closing price of the Company stock on that date. The final payout factors for performance-based stock awards granted in years 2018, 2019, 2020 and 2021 are as follows: 0% of target, 176% of target, 92% of target and 118% of target, respectively.

  107. Compensation Actually Paid Versus Company Performance

    Compensation Actually Paid Versus Company Performance The following charts provide a clear visual description of the relationship between “compensation actually paid” and certain company performance metrics, with specific reference to Total Shareholder Return, GAAP Net Income and Adjusted Book Value Per Share. The strongest corollary me tric to “compensation actually paid” is Total Shareholder Return, given the impact of stock price on both the value of our time- and performance-based share awards, with the latter evident in the expected and actual levels of payout and the value of the underlying awards on each measurement date. GAAP Net Income is not actively used in our incentive plans and is of limited relevance to the Company given the nature of our operations. While Adjusted Book Value per share is one of a number of objectives evaluated as part of our incentive plans, it only accounts for 10% of the annual incentive determination and thus its impact on compensation actually paid is limited.

  108. Potential payments upon termination or change in control as of December 31, 2023

    Potential payments upon termination or change in control as of December 31, 2023 The Company’s compensation and benefit plans provide certain compensation payments and benefits under various termination events. The following summaries describe potential compensation and benefits payable to the NEOs upon termination of employment under the following events: (a) involuntary (not for cause) or constructive termination following a change in control, (b) retirement (if eligible), (c) voluntary termination, (d) involuntary (not for cause) termination without a change in control and (e) death or disability. In general, employees participating in the compensation and benefit plans are treated similarly with respect to the various termination scenarios. Differences may apply where NEOs are covered under individual agreements as described below. Following the narrative are tables with estimated dollar values associated with these payments and benefits for each NEO.

  109. Proposal 1: Election of Directors

    Proposal 1: Election of Directors All of MBIA’s Directors are elected at each annual shareholders’ meeting for a one-year term. Shareholders will elect six Directors at the 2024 Annual Meeting to serve a term expiring at the 2025 Annual Meeting. Following is information about each nominee, including biographical data for at least the last five years, and the reasons why each has been nominated for election to the Board. Should one or more of these nominees become unavailable to accept the nomination or election as Director (an event not now anticipated), all proxies received will be voted for such other persons as the Board may recommend, unless the Board reduces the number of Directors.

  110. Proposal 1: Election of Directors

    | Diane L. Dewbrey | Biographical data: Ms. Diane L. Dewbrey was elected to the Company’s Board of Directors in November 2018. Ms. Dewbrey is currently a director of Barrett Business Services, Inc. since 2019 and is currently a member of their Risk and Finance Committee and is Chair of their Nominating and` Governance Committee. For five years, until its merger with Consolidated Communications in 2014, Ms. Dewbrey served as an Independent Director and then Chair (2013-14) of the Board of Enventis, Inc. Ms. Dewbrey earned her BS degree in Mathematics from Xavier University. She is an NACD Governance Fellow. Prior to serving as a director at Enventis, she held various senior positions at Fifth Third Bancorp, where over an eighteen year period she became Senior Vice President & Director of Central Operations and a member of the Executive Management Team, and at Foundation Bank, where in her ten years with the company she served as CEO and a Director of the Foundation Bancorp and Foundation Bank Board. Ms. Dewbrey is currently a Director of the YMCA of the USA where she also serves as Chair of the Investment Committee. Age 59. Reasons for Ms. Dewbrey’s nomination: Ms. Dewbrey has been nominated to serve as a Director of the Company due to her extensive experience in leadership positions in the financial services industry. In addition to her board leadership and senior management experience in areas including finance and investments, Ms. Dewbrey has a history of contributing meaningfully to community organizations. |

  111. Proposal 1: Election of Directors

    | William C. Fallon | Biographical data: Mr. Fallon was elected as a Director of the Company in May 2017, and appointed as Chief Executive Officer in September 15, 2017. Prior to being named Chief Executive Officer and Director, Mr. Fallon served as President, Chief Operating Officer, and Vice President of the Company and head of the Global Structured Finance Division. Mr. Fallon also serves as President and Chief Executive Officer of National. From July of 2005 to March 1, 2007, Mr. Fallon was Vice President of the Company and head of Corporate and Strategic Planning. Prior to joining the Company in 2005, Mr. Fallon was a partner at McKinsey & Company and co-leader of that firm’s Corporate Finance and Strategy Practice. Age 64. Reasons for Mr. Fallon’s nomination: Mr. Fallon has been nominated to serve as a Director of the Company due to his extensive experience with the Company as President and Chief Operating Officer of the Company and his knowledge of and experience with the Company’s business and operations, his role as CEO of National and his expertise and knowledge of the financial guarantee and financial services industry. |

  112. Proposal 1: Election of Directors

    | Steven J. Gilbert | Biographical data: Mr. Gilbert was elected to the Board of Directors in May 2011 and was elected as Chairman in July 2023. He is currently Chairman of the Board of Gilbert Global Equity Partners, L.P., a private equity fund, Vice Chairman of the Executive Board of MidOcean Capital Partners, L.P., a private equity firm, a Director of Oaktree Capital Management, an investment firm, and a Director for SDCL EDGE Acquisition Corporation, a publicly-traded company special purpose acquisition corporation and has served in these capacities since 1998, 2005, 2016 and 2021, respectively. He was previously Chairman of the Board of CPM, Inc., a global provider of process machinery for the feed industry and Chairman and Senior Managing Director of SUN Group (USA), an investment firm, from 2007 to 2009. Previously, Mr. Gilbert was Managing General Partner of Soros Capital, L. P., Commonwealth Capital Partners, L.P., and Chemical Venture Partners. He also held investment banking positions with Morgan Stanley & Co., Wertheim & Co., Inc. and E.F. Hutton International. Mr. Gilbert was admitted to the Massachusetts Bar in 1970 and practiced law at Goodwin Procter & Hoar in Boston, Massachusetts. Mr. Gilbert is a Director and Chairman of the Board at Tripointe Homes, Inc., Empire State Realty Trust, Inc., and Fairholme Funds, Inc. He is also a member of the Writer’s Guild of America (East) and the Council on Foreign Relations, and a Director of the Lauder Institute at the University of Pennsylvania. Within the past five years, Mr. Gilbert served as a Director of several privately held companies. Mr. Gilbert has also served on the boards of more than 25 companies over the span of his career. Age 76. Reasons for Mr. Gilbert’s nomination: Mr. Gilbert has been nominated to serve as a Director of the Company due to his extensive experience in leadership positions in the financial services industry and long history of board service, including both with insurance companies and a diverse group of other companies, as well as his expertise accrued during his career in finance, private equity investing, investment banking and law. |

  113. Proposal 1: Election of Directors

    | Janice L. Innis-Thompson | Biographical data: Ms. Innis-Thompson was elected to the Board of Directors in October 2021. Ms. Innis-Thompson is currently a director at the Executive Leadership Council and National Forest Foundation. She has also served on Boards for Bridge Builder Mutual Fund, an Edward Jones Complex; The Wardlaw-Hartridge School; Board IQ; New York Police Department Audit Advisory Board; and Hale House. Since 2020, Ms. Innis-Thompson has been Senior Vice President, Corporate Litigation & Legal Operations for Nationwide. For the three prior years, she was Chief Compliance Officer for Samsung Electronics America. Ms. Innis-Thompson earned a BS degree in Public Relations from University of Florida and a Juris Doctor degree from University of Florida – Fredric G. Levin College of Law. Prior to her employment with Samsung Electronics America, Ms. Innis-Thompson was Senior Managing Director, Chief Compliance & Ethics Officer during a 10-year career at TIAA. Age 58. Reasons for Ms. Innis-Thompson’s nomination: Ms. Innis-Thompson has been nominated to serve as a Director of the Company due to her extensive experience in leadership positions in the insurance industry. In addition to her board leadership and senior management experience in areas including legal and compliance, Ms. Innis-Thompson has a history of contributing meaningfully to community organizations. |

  114. Proposal 1: Election of Directors

    | Theodore Shasta | Biographical data: Mr. Shasta was elected to the Board of Directors in August 2009. Mr. Shasta is a former Senior Vice President and Partner of Wellington Management Company, a global investment advisor. At Wellington Management Company, Mr. Shasta specialized in the financial analysis of publicly traded insurance companies, including both property-casualty and financial guarantee insurers. Mr. Shasta joined Wellington Management Company in March 1996 as a global industry analyst responsible for the insurance industry. In January 2008, Mr. Shasta became a portfolio advisor responsible for senior-level relationship management for existing institutional clients and consultants as well as development of new business, a position that he held until June 2009. In addition, effective January 1999, Mr. Shasta was elected Partner and was promoted to Senior Vice President, and served in such positions until he withdrew from the partnership in June 2009. He also served on Wellington Management’s Audit Committee from January 2004 to June 2009 and was Chair of that Committee from January 2008 until June 2009. Prior to joining Wellington Management Company, Mr. Shasta was a Senior Vice President with Loomis, Sayles & Company where he was an industry analyst responsible for the automotive, freight transportation and insurance industries. Before that, he served in various capacities with Dewey Square Investors and Bank of Boston. Mr. Shasta earned his Chartered Financial Analyst designation in 1986. Mr. Shasta is a member of the Board of Directors of Chubb Limited (formerly ACE Limited) and serves as a member of its Audit Committee. Age 72. Reasons for Mr. Shasta’s nomination: Mr. Shasta has been nominated to serve as a Director of the Company due to his 25 years of experience as a financial analyst covering the insurance industry and the Company since it became a publicly traded entity, coupled with his in-depth understanding of economics, accounting and regulatory oversight of the financial guarantee industry and knowledge of the Company’s current operating environment. |

  115. Proposal 1: Election of Directors

    | Richard C. Vaughan | Biographical data: Mr. Vaughan was elected to the Board of Directors in August 2007. He served as Executive Vice President and Chief Financial Officer of Lincoln Financial Group from 1995 until his retirement in May 2005. He joined Lincoln in July 1990 as Senior Vice President and Chief Financial Officer of Lincoln National’s Employee Benefits Division. In June 1992, he was appointed Chief Financial Officer for the corporation. He was promoted to Executive Vice President in January 1995. He was previously employed with EQUICOR from September 1988 to July 1990, where he served as a Vice President in charge of public offerings and insurance accounting. Prior to that, Mr. Vaughan was a Partner at KPMG Peat Marwick in St. Louis, from July 1980 to September 1988. Age 74. Reasons for Mr. Vaughan’s nomination: Mr. Vaughan has been nominated to serve as a Director of the Company due to his extensive experience in financial services and insurance businesses, his board service and his general knowledge and experience in financial matters, including as a Chief Financial Officer. |

  116. Proposal 1: Election of Directors

    The Board has elected Mr. Gilbert as Chairman. In such capacity, he presides at non-management Director meetings. Shareholders or interested parties wishing to communicate with our Chairman or with the non-management Directors as a group may do so by submitting a communication in a confidential envelope addressed to the Chairman or the non-management Directors, in care of the Company’s Corporate Secretary, 1 Manhattanville Road, Suite 301, Purchase, New York 10577. Director independence. The Company’s Board of Directors has determined in accordance with the independence standards set forth in the Board Practices that each Director named below is an Independent Director and that none of the Directors named below have any material relationships with the Company. Such Independent Directors are: Diane L. Dewbrey, Steven J. Gilbert, Janice L. Innis-Thompson, Theodore Shasta and Richard C. Vaughan. In addition, each of the Directors named in the foregoing sentence qualifies as an “independent director” under the NYSE Corporate Governance Listing Standards. These Independent Directors constitute a significant majority of the Company’s Board, consistent with the policy set out in the Board Practices. In addition to the Board-level standards for Director independence, each member of the Audit Committee meets the enhanced independence requirements of the SEC and the NYSE for members of the Audit Committee, and each member of the Compensation Committee meets the enhanced independence requirements of the SEC and the NYSE for members of the Compensation and Governance Committee. The Board Practices include the following independence standards designed to assist the Board in assessing Director independence, and can be found on the Company’s website, www.mbia.com, under the “Corporate Responsibility and Governance” link. The terms “MBIA” and “the corporation” in the following standards refer to MBIA Inc. “The Board shall consist of a significant majority of independent directors. A director will not be considered “Independent” if such director

  117. Proposal 1: Election of Directors

    | • | is a member of management or an employee or has been a member of management or an employee within the last five years; |

  118. Proposal 1: Election of Directors

    | • | has a close family or similar relationship with a member of key management; |

  119. Proposal 1: Election of Directors

    | • | is a lawyer, advisor or consultant to the corporation or its subsidiaries or has a personal service contract with the corporation or any of its subsidiaries; |

  120. Proposal 1: Election of Directors

    | • | has any other relationship with the corporation or its subsidiaries either personally or through his or her employer which, in the opinion of the Board, would adversely affect the director’s ability to exercise his or her independent judgment as a director; |

  121. Proposal 1: Election of Directors

    | • | is currently or has been within the last five years an employee of the corporation’s independent auditor; |

  122. Proposal 1: Election of Directors

    | • | is currently or has been within the last five years an employee of any company whose compensation committee includes an officer of MBIA; and |

  123. Proposal 1: Election of Directors

    | • | is an immediate family member (i.e., spouse, parent, child, sibling, mother or father-in-law, son or daughter-in-law, brother or sister-in-law or anyone (other than a domestic employee) who shares a person’s home) of a person described in either of the two previous categories. |

  124. Proposal 1: Election of Directors

    Because the corporation is a major financial institution, outside directors or the companies they are affiliated with will sometimes have a business relationship with the corporation or its subsidiaries. Directors and companies with which they are affiliated are not given special treatment in these relationships. The Board believes that the existence of a business relationship is not, in and of itself, sufficient to disqualify a director from being considered an independent director. The materiality of the relationships and the director’s own ability to exercise independent judgment shall be evaluated, and external criteria for independence, such as those promulgated by the SEC and the NYSE shall be considered, including the enhanced independence requirements of the SEC and the NYSE for members of the Audit Committee and members of the Compensation and Governance Committee. To help maintain the independence of the Board, all directors are expected to deal at arm’s length with the corporation and its subsidiaries and to disclose circumstances material to the director which might be perceived as a conflict of interest. The corporation shall disclose publicly, as required by law, its compliance with the requirement that a majority of its Board is comprised of independent directors. The Board will make independence determinations on an annual basis prior to approving the director nominees for inclusion in the corporation’s proxy statement and, if an individual is to be elected to the Board other than at an annual meeting, prior to such election. Each director and nominee for director shall provide the corporation with full information regarding his or her business and other affiliations for purposes of evaluating the director’s independence.” The Board of Directors recommends unanimously that you vote FOR this proposal to elect six Directors. Vote necessary to elect six incumbent Directors. Directors are elected by a plurality of the votes cast under applicable law. Pursuant to the Company’s By-Laws, an incumbent Director who fails to receive a majority of votes cast “for” his or her election in an uncontested election will be required to tender his or her resignation no later than five business days from the date of the certification of the election results and, no later than 90 days from such certification, the Board will accept such resignation absent compelling reasons. Brokers do not have discretion to vote on this proposal without your instruction. If you do not instruct your broker how to vote on this proposal, your broker will deliver a non-vote on this proposal. Abstentions from voting on the proposal and broker non-votes will have no effect on the outcome of the election or the resignation requirement.