<SEC-DOCUMENT>0001157523-12-006474.txt : 20121226
<SEC-HEADER>0001157523-12-006474.hdr.sgml : 20121226
<ACCEPTANCE-DATETIME>20121226172937
ACCESSION NUMBER:		0001157523-12-006474
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20121221
ITEM INFORMATION:		Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers
FILED AS OF DATE:		20121226
DATE AS OF CHANGE:		20121226

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			MBIA INC
		CENTRAL INDEX KEY:			0000814585
		STANDARD INDUSTRIAL CLASSIFICATION:	SURETY INSURANCE [6351]
		IRS NUMBER:				061185706
		STATE OF INCORPORATION:			CT
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-09583
		FILM NUMBER:		121285918

	BUSINESS ADDRESS:	
		STREET 1:		113 KING ST
		CITY:			ARMONK
		STATE:			NY
		ZIP:			10504
		BUSINESS PHONE:		914-273-4545

	MAIL ADDRESS:	
		STREET 1:		113 KING ST
		CITY:			ARMONK
		STATE:			NY
		ZIP:			10504
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>a50516845.htm
<DESCRIPTION>MBIA INC. 8-K
<TEXT>
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      <br>
      <font style="font-size: 18pt"><b>UNITED STATES</b></font><br><font style="font-family: Times New Roman; font-size: 18pt"><b>SECURITIES
      AND EXCHANGE COMMISSION</b></font><br><font style="font-family: Times New Roman; font-size: 14pt"><b>Washington,
      D.C. 20549</b></font><br><br><font style="font-family: Times New Roman; font-size: 18pt"><b>FORM
      8-K</b></font><br><br><font style="font-family: Times New Roman; font-size: 14pt"><b>CURRENT
      REPORT</b></font><br><br><font style="font-family: Times New Roman; font-size: 10pt">Pursuant
      to Section 13 or 15(d) of</font><br><font style="font-family: Times New Roman; font-size: 10pt">
      the Securities Exchange Act of 1934</font><br><br><br><font style="font-family: Times New Roman; font-size: 10pt">Date
      of Report (Date of earliest event reported): December 26, 2012&#160;(December
      21, 2012)</font><br><br><font style="font-size: 18pt"><b>MBIA INC.</b></font><br><font style="font-family: Times New Roman; font-size: 10pt">(Exact
      name of registrant as specified in its charter)</font><br><br>
    </p>
    <div style="text-align:center">
    <table cellspacing="0" style="font-size: 10pt; margin-bottom: 10.0px; width: 100%; margin-left:auto;margin-right:auto; font-family: Times New Roman">
      <tr>
        <td valign="bottom" style="padding-left: 0.0px; width: 33%; text-align: center">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Connecticut</b>
          </p>
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; width: 34%; text-align: center; white-space: nowrap">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>1-9583</b>
          </p>
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; width: 33%; text-align: center; white-space: nowrap">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>06-1185706</b>
          </p>
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; width: 33%; text-align: center">
          <p style="margin-top: 0px; margin-bottom: 0px">
            (State or other jurisdiction of
          </p>
          <p style="margin-top: 0px; margin-bottom: 0px">
            incorporation)
          </p>
        </td>
        <td valign="top" style="padding-left: 0.0px; width: 34%; text-align: center">
          <p style="margin-top: 0px; margin-bottom: 0px">
            (Commission File Number)
          </p>
        </td>
        <td valign="top" style="padding-left: 0.0px; width: 33%; text-align: center">
          <p style="margin-top: 0px; margin-bottom: 0px">
            (IRS Employer Identification No.)
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p>
      <br>

    </p>
<div style="text-align:left">
    <table cellspacing="0" style="font-size: 10pt; width: 100%; margin-bottom: 10.0px; font-family: Times New Roman">
      <tr>
        <td valign="bottom" style="padding-left: 0.0px; width: 50%; text-align: center">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>113 King Street,<br>Armonk, New York</b>
          </p>
        </td>
        <td valign="bottom" style="padding-left: 0.0px; padding-right: 0.0px; width: 50%; text-align: center; white-space: nowrap">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>10504</b>
          </p>
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="padding-left: 0.0px; width: 50%; text-align: center">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <font style="font-family: Times New Roman; font-size: 10pt">(Address
            of principal executive offices)</font>
          </p>
        </td>
        <td valign="bottom" style="padding-left: 0.0px; width: 50%; text-align: center">
          <font style="font-family: Times New Roman; font-size: 10pt">(Zip
          Code)</font>
        </td>
      </tr>
    </table>
    </div>
    <p style="text-align: center">

    </p>
    <p style="text-align: center">
      <font style="font-family: Times New Roman; font-size: 10pt">Registrant&#8217;s
      telephone number, including area code:</font><br><b>914-273-4545</b><br><br><br><b>Not
      Applicable</b><br><font style="font-family: Times New Roman; font-size: 10pt">(Former
      name or former address, if changed since last report)</font><br><br><br>
    </p>
    <p>
      <font style="font-family: Times New Roman; font-size: 10pt">Check the
      appropriate box below if the Form 8-K filing is intended to
      simultaneously satisfy the filing obligation of the registrant under any
      of the following provisions:</font>
    </p>
    <p>
      <font style="font-family: Arial Unicode MS; font-size: 10pt">&#8414;</font>
      <font style="font-family: Times New Roman; font-size: 10pt">Written
      communications pursuant to Rule 425 under the Securities Act (17 CFR
      230.425)</font>
    </p>
    <p>
      <font style="font-family: Arial Unicode MS; font-size: 10pt">&#8414;</font>
      <font style="font-family: Times New Roman; font-size: 10pt">Soliciting
      material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)</font>
    </p>
    <p>
      <font style="font-family: Arial Unicode MS; font-size: 10pt">&#8414;</font>
      <font style="font-family: Times New Roman; font-size: 10pt">Pre-commencement
      communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
      240.14d-2(b))</font>
    </p>
    <p>
      <font style="font-family: Arial Unicode MS; font-size: 10pt">&#8414;</font>
      <font style="font-family: Times New Roman; font-size: 10pt">Pre-commencement
      communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
      240.13e-4(c))</font><br>
    </p>
    <hr style="width: 100%; text-align: center; color: #000000; height: 1.0 pt">


    <p>

    </p>
    <div style="width: 100%; margin-bottom: 10pt; margin-left: 0pt; margin-right: 0pt; text-indent: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>
      <b>Item 5.02 DEPARTURE OF DIRECTORS OR CERTAIN OFFICERS; ELECTION OF
      DIRECTORS; APPOINTMENT OF CERTAIN OFFICERS; COMPENSATORY ARRANGEMENTS OF
      CERTAIN OFFICERS.</b>
    </p>
    <p style="text-align: justify">
      On December 21, 2012, the Board of Directors (the &#8220;Board&#8221;) of MBIA Inc.
      (the &#8220;Company&#8221;) approved new compensation packages for C. Edward
      Chaplin, William Fallon, Anthony McKiernan and Ram Wertheim. The
      compensation packages include retention cash awards (in the aggregate
      amount of $11.4 million) and stock awards under the Company&#8217;s 2005
      Omnibus Incentive Plan (in the aggregate amount of 2 million shares).
      The cash awards granted to the executives are: $3.5 million to Mr.
      Chaplin; $3.5 million to Mr. Fallon; $2.0 million to Mr. McKiernan; and
      $2.4 million to Mr. Wertheim. The individual stock awards made to the
      executives are as follows: Mr. Chaplin received 600,000 shares; Mr.
      Fallon received 600,000 shares; Mr. McKiernan received 400,000 shares;
      and Mr. Wertheim received 400,000 shares.
    </p>
    <p style="text-align: justify">
      In the event an executive voluntarily terminates his employment with the
      Company on or before December 31, 2015 without the Board&#8217;s consent, he
      will repay the Company a portion of the retention bonus determined by
      multiplying one half of his cash award by a fraction, the numerator of
      which is the number of days from the date his employment terminates
      through December 31, 2015 and the denominator of which is 1,095. Each
      such executive will not receive any additional stock awards for years
      2012, 2013 and 2014.
    </p>
    <p style="text-align: justify">
      One-half of each executive&#8217;s restricted stock grant vests in three years
      on December 31, 2015 if he remains employed through such date, provided
      that these shares will become vested in connection with the occurrence
      of a change in control of the Company or a &#8220;qualifying termination&#8221;
      prior to such date. Up to an additional one-quarter of each award will
      vest on a pro-rata basis on the earlier to occur of December 31, 2016 or
      a change in control of the Company in which the Company&#8217;s shares of
      common stock cease to be publicly traded (the &#8220;first vesting date&#8221;), if
      the applicable executive remains employed through the first vesting date
      (or he has a qualifying termination before such date), to the extent
      that the &#8220;market value appreciation&#8221; criteria for these shares is
      satisfied as of the first vesting date. Similarly, up to the remaining
      one-quarter of each award will vest on a pro-rata basis on the earlier
      to occur of December 31, 2017 or a change in control of the Company in
      which the Company&#8217;s shares of common stock cease to be publicly traded
      (the &#8220;second vesting date&#8221;), if the applicable executive remains
      employed through the second vesting date (or he has a qualifying
      termination before such date), to the extent that the &#8220;market value
      appreciation&#8221; criteria for these shares is satisfied as of the second
      vesting date. A &#8220;qualifying termination&#8221; means a termination of an
      executive&#8217;s employment (a) due to his death or disability, (b) by the
      Company without cause, (c) due to his retirement after December 31, 2015
      on at least six months' prior notice, or (d) with the approval of the
      Board.
    </p>
    <div style="width: 100%; margin-bottom: 10pt; margin-left: 0pt; margin-right: 0pt; text-indent: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="font-size: 10pt; text-align: center; font-family: Times New Roman">
          2
        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p style="text-align: justify">
      <br>
      The &#8220;market value appreciation&#8221; criteria for the shares subject to
      vesting on a vesting date is satisfied to the extent that the average
      closing share price over the 60 trading days prior to the applicable
      vesting date is between $10.00 and $25.00 per share based on the
      following schedule, with the percentage of the shares that vests between
      any two values specified in the table to be determined by linear
      interpolation:
    </p>
<div style="text-align:left">
    <table cellspacing="0" style="font-size: 10pt; width: 100%; margin-bottom: 10.0px; font-family: Times New Roman">
      <tr>
        <td valign="top" style="padding-left: 0.0px; width: 50%; text-align: center">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Fair Market Value Per Share</b>
          </p>
        </td>
        <td valign="top" style="padding-left: 0.0px; width: 50%; text-align: center">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Percentage Vested</b>
          </p>
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; width: 50%; text-align: center">
          $10 or less
        </td>
        <td valign="top" style="padding-left: 0.0px; padding-right: 0.0px; width: 50%; text-align: center; white-space: nowrap">
          0%
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; padding-right: 0.0px; width: 50%; text-align: center; white-space: nowrap">
          $13
        </td>
        <td valign="top" style="padding-left: 0.0px; padding-right: 0.0px; width: 50%; text-align: center; white-space: nowrap">
          20%
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; padding-right: 0.0px; width: 50%; text-align: center; white-space: nowrap">
          $16
        </td>
        <td valign="top" style="padding-left: 0.0px; padding-right: 0.0px; width: 50%; text-align: center; white-space: nowrap">
          40%
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; padding-right: 0.0px; width: 50%; text-align: center; white-space: nowrap">
          $17.50
        </td>
        <td valign="top" style="padding-left: 0.0px; padding-right: 0.0px; width: 50%; text-align: center; white-space: nowrap">
          50%
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; padding-right: 0.0px; width: 50%; text-align: center; white-space: nowrap">
          $19
        </td>
        <td valign="top" style="padding-left: 0.0px; padding-right: 0.0px; width: 50%; text-align: center; white-space: nowrap">
          60%
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; padding-right: 0.0px; width: 50%; text-align: center; white-space: nowrap">
          $22
        </td>
        <td valign="top" style="padding-left: 0.0px; padding-right: 0.0px; width: 50%; text-align: center; white-space: nowrap">
          80%
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; width: 50%; text-align: center">
          $25 or more
        </td>
        <td valign="top" style="padding-left: 0.0px; padding-right: 0.0px; width: 50%; text-align: center; white-space: nowrap">
          100%
        </td>
      </tr>
    </table>
    </div>
    <p>

    </p>
    <p>

    </p>
    <p style="text-align: justify">
      Alternatively, the &#8220;market value appreciation&#8221; criteria will be
      satisfied upon the first date on which the fair market value per share
      of the Company&#8217;s common stock over the 20 previous consecutive trading
      days has been at least $25 per share, in which case the percentage of
      the applicable shares to become vested on the applicable vesting date
      will be 100%.
    </p>
    <p style="text-align: justify">
      Any shares that have not vested as of the applicable vesting date will
      be forfeited unless otherwise approved by the Company&#8217;s Compensation and
      Governance Committee. In addition, the shares will (to the extent not
      yet vested) be forfeited upon the applicable executive&#8217;s voluntary
      resignation (other than in connection with a qualifying termination or
      as otherwise approved by the Company&#8217;s Compensation and Governance
      Committee) or the Company&#8217;s termination of his employment for cause.
    </p>
    <p style="text-align: justify">
      The cash retention awards payable as described above to Messrs. Chaplin,
      Fallon, McKiernan and Wertheim will be made by the Company and will not
      be allocated to or reimbursed by its insurance subsidiaries.
    </p>
    <p>

    </p>
    <div style="width: 100%; margin-bottom: 10pt; margin-left: 0pt; margin-right: 0pt; text-indent: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="font-size: 10pt; text-align: center; font-family: Times New Roman">
          3
        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>
      <br>

    </p>
    <p style="text-align: center">
      <font style="font-family: Times New Roman; font-size: 10pt"><b>SIGNATURES</b></font>
    </p>
    <p style="font-size: 10pt; text-indent: 30.0px; font-family: Times New Roman">
      <font style="font-family: Times New Roman; font-size: 10pt">Pursuant to
      the requirements of the Securities Exchange Act of 1934, the registrant
      has duly caused this report to be signed on its behalf by the
      undersigned hereunto duly authorized.</font>
    </p>
    <p style="font-size: 10pt; text-indent: 30.0px; font-family: Times New Roman">

    </p>
<div style="text-align:left">
    <table cellspacing="0" style="font-size: 10pt; width: 100%; margin-bottom: 10.0px; font-family: Times New Roman">
      <tr>
        <td style="width: 5%">

        </td>
        <td style="width: 45%">

        </td>
        <td colspan="2" valign="top" style="padding-left: 0.0px; text-align: left">
          <p style="margin-top: 0px; margin-bottom: 0px">
            MBIA INC.
          </p>
        </td>
        <td style="width: 10%">

        </td>
      </tr>
      <tr>
        <td style="width: 5%">

        </td>
        <td style="width: 45%">

        </td>
        <td colspan="2">

        </td>
        <td style="width: 10%">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="width: 5%">

        </td>
        <td style="width: 45%">

        </td>
        <td colspan="2">

        </td>
        <td style="width: 10%">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="width: 5%">

        </td>
        <td style="width: 45%">

        </td>
        <td colspan="2" valign="top" style="padding-left: 0.0px; text-align: left">
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
        </td>
        <td style="width: 10%">

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; padding-bottom: 2.0px; width: 5%; text-align: left">
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
        </td>
        <td valign="top" style="padding-left: 0.0px; padding-bottom: 2.0px; width: 45%; text-align: left">
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
        </td>
        <td valign="top" style="padding-left: 0.0px; padding-bottom: 2.0px; width: 3%; text-align: left">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>By</b>:
          </p>
        </td>
        <td valign="top" style="padding-left: 0.0px; border-bottom: solid black 1.0pt; width: 37%; text-align: left">
          <p style="margin-top: 0px; margin-bottom: 0px">
            /s/ Ram D. Wertheim
          </p>
        </td>
        <td style="width: 10%">

        </td>
      </tr>
      <tr>
        <td style="width: 5%">

        </td>
        <td style="width: 45%">

        </td>
        <td style="width: 3%">

        </td>
        <td valign="top" style="padding-left: 0.0px; width: 37%; text-align: left">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Ram D. Wertheim
          </p>
        </td>
        <td style="width: 10%">

        </td>
      </tr>
      <tr>
        <td style="width: 5%">

        </td>
        <td style="width: 45%">

        </td>
        <td style="width: 3%">

        </td>
        <td valign="top" style="padding-left: 0.0px; width: 37%; text-align: left">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Chief Legal Officer
          </p>
        </td>
        <td style="width: 10%">

        </td>
      </tr>
      <tr>
        <td style="width: 5%">

        </td>
        <td style="width: 45%">

        </td>
        <td style="width: 3%">

        </td>
        <td style="width: 37%">

        </td>
        <td style="width: 10%">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; width: 5%; text-align: left">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Date:
          </p>
        </td>
        <td valign="top" style="padding-left: 0.0px; width: 45%; text-align: left">
          <p style="margin-top: 0px; margin-bottom: 0px">
            December 26, 2012
          </p>
        </td>
        <td style="width: 3%">

        </td>
        <td style="width: 37%">

        </td>
        <td style="width: 10%">

        </td>
      </tr>
    </table>
    </div>
    <p style="text-align: center">
      <br>
      4<br>
    </p>
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