CME » Topics » Base Pay

This excerpt taken from the CME DEF 14A filed Mar 31, 2009.

Base Pay

We generally target base pay at the 50th percentile of the competitive market relative to each position’s duties and level of responsibility. At the beginning of each year the compensation committee reviews the base salaries of the senior management group taking into consideration their total compensation. In general, the evaluation of base salaries involves a review of a variety of factors:

 

   

the nature and responsibility of the position;

 

   

the impact, contribution, expertise and experience of the individual;

 

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competitive market information regarding salaries to the extent available and relevant;

 

   

the importance of retaining the individual along with the competitiveness of the market for the individual’s talent and services; and

 

   

recommendations of the Chief Executive Officer and the President (except in the case of their own compensation).

In general the compensation committee considers salary increases for the senior management group on an annual basis early in the year. In consideration of the current economic situation and as part of the Company’s overall increased focus on limiting expenses in 2009, the committee deferred consideration of any proposed salary increases for the senior management group. However, the committee recognizes that the overall target compensation of the senior management group is significantly lower than the market median as discussed on page 36.

This excerpt taken from the CME DEF 14A filed Mar 17, 2008.

Base Pay

We target base pay at the 50th percentile of the competitive market relative to each position’s duties and level of responsibility. At the beginning of each year the compensation committee reviews the base salaries, in the context of their overall total compensation, of the senior management group. In general, the evaluation of base salaries involves a review of individual factors, such as past and current performance; experience in the position; potential with the Company; level and scope of responsibility; and “internal equity”— how a position compares in scope and responsibility to other positions within the Company. A full discussion of our benchmarking practice is found on pages 27 and 28.

In 2008, the committee approved an increase in Mr. Parisi’s base salary from $325,000 to $375,000 effective as of January 1, 2008. No other salary increases were made for the Named Executive Officers. This increase of 15% was approved in recognition of Mr. Parisi’s performance and the growth and increased complexity of his responsibilities based on recommendations from the Chief Executive Officer and the President.

This excerpt taken from the CME DEF 14A filed Mar 15, 2007.

Base Pay

We target base pay at the 50th percentile of the competitive market relative to each position’s duties and level of responsibility. Generally, we annually review the range of our base salaries based upon similar job duties and levels of responsibility to determine if such salaries fall within a competitive range. Individual salaries set within these ranges are based upon an evaluation of individual factors, such as past and current performance; experience in the position; potential with the Company; level and scope of responsibility; and “internal equity” —how a position compares in scope and responsibility to other positions within the Company.

The Compensation Committee annually evaluates base salaries for the Management Team, including the salaries of the Named Executive Officers. However, the Committee typically adjusts salaries for these individuals

 

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less frequently. For 2007, the Committee approved base salary increases for the Chief Financial Officer from $275,000 in 2006 to $325,000 in 2007 and for three other members of the Management Team, which increases did not exceed 10%. No other base pay adjustments were made for members of the Management Team.

The base salary earned by each of our Named Executive Officers in 2006 is set forth in the Summary Compensation Table on page 31.

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