Summary of Compensation Arrangements
Applicable to Named Executive Officers and
Non-Employee Directors of The PMI Group, Inc.
This summary provides information about compensatory arrangements not otherwise provided in other exhibits.
1. Summary of Compensation Arrangements Applicable to Named Executive Officers
The Compensation Committee (the “Committee”) of the Board of Directors of The PMI Group, Inc. (“PMI ) oversees and
reviews PMI’s executive compensation policies and programs and approves the form and amount of compensation to be paid to
PMI’s executive officers.
Each of the executive officers of PMI has an at-will employment relationship with PMI and does not have an employment
agreement, other than a change-of-control employment agreement, the form of which has been filed with the SEC.
Annual Compensation - Base salaries and incentive compensation
On February 16, 2005, the Committee approved the following annual 2005 base salaries and 2004 bonus incentive awards for
PMI’s Named Executive Officers (which officers were determined by reference to PMI’s Proxy Statement, dated April 23, 2004):
The 2004 bonus incentive awards listed above were granted by the Committee pursuant to The PMI Group, Inc. Bonus
Incentive Plan, which was approved by the shareholders in 2004, and were based upon pre-determined goals established by the
Committee. The Bonus Incentive Plan (the “Plan”) requires the Committee to annually establish (i) a maximum award for each
Named Executive Officer, representing the maximum bonus amount that could be paid to that executive for that performance
year, and (ii) the maximum size of the performance pool under the Plan. In no event may a participant in the Plan be allocated
more than 30% of the performance pool.
On February 16, 2005, the Committee established a maximum 2005 bonus incentive award for each Named Executive Officer, set
the maximum size of the 2005 performance pool at 5% of PMI’s consolidated 2005