Form 4: CME Group Executive Sunil Cutinho Reports Share Award and Tax Withholding

Sunil Cutinho, Chief Information Officer of CME Group, reports the acquisition of shares from a performance award and subsequent surrender of shares for tax obligations.

Summary

• On March 15, 2024, Sunil Cutinho, Chief Information Officer of CME Group, acquired 7,183 shares of Common Stock Class A at a price of $217.5 per share from a 2020 performance share award.
• These shares were earned based on CME Group's total shareholder return relative to the S&P 500 over the period of 2021-2023.
• On the same day, Mr. Cutinho surrendered 3,183 shares to CME Group at $217.5 per share to cover tax withholding obligations related to the performance share award.
• Following these transactions, Mr. Cutinho directly owns 29,495 shares of CME Group's Common Stock Class A.

Sentiment

Score: 7

Explanation: The document reflects a positive outcome regarding executive compensation tied to company performance, but also includes the standard practice of tax withholding, resulting in a neutral to slightly positive sentiment.

Positives

• The acquisition of shares indicates that CME Group met its performance targets related to shareholder return relative to the S&P 500 over the 2021-2023 period.

Industry Context

This filing reflects standard executive compensation practices, where performance-based equity awards are used to align management's interests with those of shareholders. The tax withholding is a routine part of equity compensation.

Comparison to Industry Standards

• Performance-based equity awards are a common component of executive compensation packages in publicly traded companies, including those in the financial services industry like Intercontinental Exchange (ICE) and Nasdaq, Inc.
• These awards typically vest based on the achievement of pre-defined financial or strategic goals, such as revenue growth, profitability, or total shareholder return, similar to the S&P 500 relative return metric used by CME Group.
• Tax withholding obligations upon vesting of equity awards are standard practice across the industry.

Stakeholder Impact

• The share award reflects positively on CME Group's performance, potentially benefiting shareholders.
• The executive's actions do not have a direct impact on employees, customers, suppliers, or creditors.

Key Dates