Form 4: CME Group Executive Julie Holzrichter Reports Share Award and Tax Withholding

Julie Holzrichter, Sr MD Chief Operating Officer of CME Group Inc., reports acquisition of shares from a performance award and subsequent disposal to cover tax obligations.

Summary

• On March 15, 2024, Julie Holzrichter, Sr MD Chief Operating Officer of CME Group Inc., acquired 7,560 shares of Common Stock Class A at a price of $217.5 per share from a 2020 performance share award.
• The award was based on the company's total shareholder return relative to the S&P 500 over the period of 2021-2023.
• On the same day, Ms. Holzrichter surrendered 3,350 shares at $217.5 per share to CME Group to fulfill tax withholding obligations related to the performance share award.
• Following these transactions, Ms. Holzrichter beneficially owns 38,416 shares of CME Group Inc. Common Stock Class A.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. The filing indicates that the executive received a performance-based award, suggesting the company met certain performance targets. However, the subsequent sale of shares for tax obligations is a routine transaction.

Positives

• The acquisition of shares indicates that the company achieved its performance goals related to total shareholder return relative to the S&P 500 over the period of 2021-2023.

Industry Context

This filing is a routine disclosure related to executive compensation and stock ownership, common in publicly traded companies. It reflects the alignment of executive incentives with shareholder returns.

Comparison to Industry Standards

• Performance-based equity compensation is a common practice among publicly traded companies, particularly in the financial services sector.
• Companies like Intercontinental Exchange (ICE) and Nasdaq, Inc. also utilize similar equity-based compensation plans to incentivize executives and align their interests with those of shareholders.
• The vesting of performance shares based on relative TSR (Total Shareholder Return) compared to the S&P 500 is a widely used metric for evaluating executive performance in the industry.

Stakeholder Impact

• Shareholders may view the vesting of performance shares positively, as it indicates the company achieved its performance goals.
• The transaction has a minimal impact on other stakeholders.

Key Dates