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

Julie Winkler, Sr MD Chief Commercial Officer at CME Group, reports acquisition of shares from a performance award and subsequent surrender of shares for tax obligations.

Summary

• On March 15, 2024, Julie Winkler, Sr MD Chief Commercial Officer of CME Group, acquired 6,425 shares of Common Stock Class A at a price of $217.5 per share.
• These shares were earned from a 2020 performance share award based on CME Group's total shareholder return relative to the S&P 500 over the period 2021-2023.
• On the same day, Ms. Winkler surrendered 2,847 shares to CME Group at $217.5 per share to fulfill tax withholding obligations related to the performance share award.
• Following these transactions, Ms. Winkler beneficially owns 31,340 shares of CME Group Common Stock Class A.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. The vesting of performance shares suggests the company met its performance targets. The tax withholding is a normal part of equity compensation.

Positives

• The vesting of performance shares indicates that CME Group met certain performance criteria related to shareholder return relative to the S&P 500.

Industry Context

This filing is a routine disclosure related to executive compensation and stock ownership, common in publicly traded companies. It reflects the standard practice of using equity-based compensation to align executive interests with shareholder value.

Comparison to Industry Standards

• Equity compensation is a standard practice among publicly traded companies, particularly in the financial services sector.
• Companies like Intercontinental Exchange (ICE) and Nasdaq, Inc. also utilize performance-based equity awards to incentivize executives.
• The vesting of performance shares based on relative TSR (Total Shareholder Return) compared to the S&P 500 is a common metric used in executive compensation plans.

Stakeholder Impact

• The vesting of performance shares can be viewed positively by shareholders as it indicates the company achieved certain performance goals.
• The tax withholding transaction has no direct impact on stakeholders.

Key Dates