Summary
CME Group Inc. (CME) filed an 8-K report on September 12, 2005, disclosing material definitive agreements related to consulting arrangements with two key board members, Leo Melamed and Jack Sandner. These agreements are designed to secure the continued service and benefit from the extensive industry knowledge of both Mr. Melamed, Chairman Emeritus, and Mr. Sandner, former Chairman. The agreements outline compensation and terms of service for both individuals. Mr. Melamed will receive $300,000 annually for consulting, plus expenses and up to $150,000 for non-travel related costs. Mr. Sandner will receive $200,000 annually for consulting, plus expenses. Both agreements include non-compete clauses for the duration of their directorship and one year thereafter. Additionally, the filing details the compensation structure for non-executive directors, including annual stipends, equity grants, and per-meeting fees, capped at $100,000 per year.
Key Highlights
- 1CME Group Inc. entered into material definitive agreements for consulting services with Leo Melamed and Jack Sandner.
- 2These agreements aim to retain the expertise of Mr. Melamed (Chairman Emeritus) and Mr. Sandner (former Chairman).
- 3Mr. Melamed will receive $300,000 per annum for consulting services, plus expenses and $150,000 for related non-travel costs.
- 4Mr. Sandner will receive $200,000 per annum for consulting services, plus expenses.
- 5Both consulting agreements include non-compete provisions for the term of their board service and one year following.
- 6The filing also outlines compensation for CME Group's non-executive directors, including annual cash stipends, equity grants, and per-meeting fees.
- 7Compensation for non-executive directors is capped at $100,000 annually for board and committee meeting attendance fees.