CME » Topics » Bonus Guidelines as Percent of Base Earnings

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

Bonus Guidelines as Percent of Base Earnings


     Below Threshold     Threshold     Target     Maximum  

Executive Chairman

   0 %   37.5 %   75 %   150 %

Chief Executive Officer

   0 %   37.5 %   100 %   150 %

Other Management Team Members

   0 %   37.5 %   75 %   150 %

Managing Directors

   0 %   20 %   40 %   80 %(1)


   0 %   15 %   30 %   45 %(1)

(1) Employees below the level of the Management Team with outstanding performance evaluations may be awarded bonuses in excess of the maximum guidelines when actual cash earnings significantly exceeds the pre-established target. Named Executive Officers, other members of the Management Team and the Executive Chairman are not permitted to receive bonuses in excess of the above-stated maximum guidelines.

In determining an individual’s bonus, Company performance (the cash earnings target) and individual performance are weighted differently depending upon the individual’s position. We adopted this distinction because we believe that employees at higher levels in the organization can directly affect, and should be more accountable for, the Company’s financial performance; thus, we calculate a greater percentage of our officers’ bonuses based on Company performance. In addition, we incorporate a teamwork component in the determination of bonus awards to encourage our employees to work together as teams to collaboratively achieve our business objectives.

The Committee approved the bonuses for the Named Executive Officers and for the other members of the Management Team for 2006 based on the Company’s achievement of cash earnings and their individual performance within the established bonus guidelines described above. Each Named Executive Officer met and exceeded his or her performance goals for 2006. The bonus awarded to each Named Executive Officer for 2006 is set forth in the Summary Compensation Table under the heading Non-Equity Incentive Plan Compensation on page 31.

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki