Summary
CME Group Inc. (CME) filed an 8-K on May 8, 2018, to announce an amendment to the employment agreement with its Chairman and Chief Executive Officer, Terrence A. Duffy. The key change is the extension of Mr. Duffy's employment term from December 31, 2020, to December 31, 2022. Importantly, the amended agreement maintains the same terms regarding his minimum annual base salary, target bonus opportunity, and target grant date value opportunity, indicating no immediate increase in compensation for the extended period. The amendment also outlines provisions for Mr. Duffy's compensation and equity awards upon reaching the new end date of December 31, 2022. Specifically, he will be entitled to a bonus for the 2022 plan year and accelerated vesting for certain outstanding equity awards, provided he remains employed through the end of 2022 and executes a general release. This move signals the company's intention to retain its CEO for a longer duration while preserving current compensation structures.
Key Highlights
- 1Terrence A. Duffy, Chairman and CEO, has had his employment agreement extended to December 31, 2022.
- 2The extension continues his current employment term by two years, from the previous expiration of December 31, 2020.
- 3No changes were made to Mr. Duffy's minimum annual base salary, target bonus opportunity, or target grant date value opportunity as part of this amendment.
- 4Upon meeting the extended term, Mr. Duffy will be eligible for a bonus for the 2022 plan year.
- 5Outstanding unvested time-vesting equity awards granted after December 31, 2020, will vest, and performance-based equity awards will be settled based on actual performance.
- 6These bonus and vesting provisions are contingent on Mr. Duffy's continued employment through December 31, 2022, and the execution of a general release.
- 7The amended employment agreement is effective as of May 8, 2018, and is filed as an exhibit to the 8-K.