Summary
CME Group Inc. (CME) filed an 8-K on December 18, 2019, to disclose an amended and restated employment agreement with its Chairman and Chief Executive Officer, Terrence A. Duffy. The agreement extends Mr. Duffy's employment term by one year, from December 31, 2022, to December 31, 2023. Key changes to Mr. Duffy's compensation include an increase in his target annual incentive bonus opportunity from 175% to 200% of his base salary, commencing January 1, 2020. Furthermore, his target grant date value opportunity under the omnibus stock plan will significantly increase from 350% to 600% of his annual base salary. The amended agreement also outlines specific conditions for bonus and equity award vesting upon completion of his extended term, contingent on a general release. The base salary and other terms of the employment agreement remain unchanged.
Key Highlights
- 1CEO Terrence A. Duffy's employment term extended by one year to December 31, 2023.
- 2Target annual incentive bonus opportunity increased from 175% to 200% of base salary, effective January 1, 2020.
- 3Target grant date value opportunity for stock plan awards increased significantly from 350% to 600% of base salary.
- 4No change to Mr. Duffy's minimum annual base salary.
- 5Specific provisions for 2023 bonus and equity vesting upon completion of extended term, subject to general release.
- 6The amended agreement does not alter other terms of Mr. Duffy's prior employment contract.