8-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported) May 21, 2014

 

 

CME GROUP INC.

(Exact Name of Registrant as Specified in Charter)

 

 

 

Delaware   001-31553   36-4459170

(State or Other Jurisdiction

of Incorporation)

 

(Commission

File No.)

 

(IRS Employer

Identification No.)

 

20 South Wacker Drive

Chicago, Illinois

  60606
(Address of Principal Executive Offices)   (Zip Code)

Registrant’s telephone number, including area code: (312) 930-1000

N/A

(Former Name or Former Address, if Changed Since Last Report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 


Item 1.01. Entry into a Material Definitive Agreement.

At the 2014 CME Group Inc. (the “Company”) Annual Meeting of Shareholders held on May 21, 2014, (the “Annual Meeting”) shareholders approved proposals to adopt amendments to the Company’s Director Stock Plan and its Incentive Plan for Named Executive Officers. The amendments to the Director Stock Plan include an extension of the term of the plan to May 21, 2024. The amendments to the Incentive Plan for Named Executive Officers include an extension of the term until May 21, 2019 in accordance with Section 162(m) of the Internal Revenue Code and the addition of certain performance metrics.

The foregoing description is only a summary, does not purport to be complete and is qualified in its entirety by reference to, and should be read in conjunction with, the complete text of the CME Group Inc. Director Stock Plan and the Amended and Restated CME Group Inc. Incentive Plan for Named Executive Officers, which are filed as Exhibit 10.1 and Exhibit 10.2, respectively, hereto and are incorporated herein by reference.

Item 5.07. Submission of Matters to a Vote of Security Holders.

At the close of business on March 26, 2014, the record date of the Annual Meeting, the Company had 335,783,451 shares of Class A common stock and 3,138 shares of Class B common stock issued and outstanding. The holders of a total of 287,483,105 shares of Class A and Class B common stock were present at the Annual Meeting, either in person or by proxy, which total constituted approximately 86% of the issued and outstanding shares on the record date for the Annual Meeting. Additionally, approximately 45% of the Class B-1, 41% of the Class B-2 and 39% of the Class B-3 shares of common stock were present at the Annual Meeting, either in person or by proxy.

The results of the proposals are as follows:

 

  1. The election of eighteen Equity Directors to serve until 2015 (elected by the Class A and Class B shareholders voting together as a single class):

 

Name

   Votes For      Votes Against      Abstentions  

Terrence A. Duffy

     249,587,781         7,732,137         577,717   

Phupinder S. Gill

     250,871,543         6,512,528         513,564   

Timothy S. Bitsberger

     251,383,907         5,336,349         1,177,379   

Charles P. Carey

     248,391,839         7,254,370         2,251,426   

Dennis H. Chookaszian

     229,891,575         25,362,269         2,643,791   

Martin J. Gepsman

     248,148,851         8,673,949         1,074,835   

Larry G. Gerdes

     250,986,235         5,704,247         1,207,153   

Daniel R. Glickman

     248,539,794         8,239,602         1,118,239   

J. Dennis Hastert

     251,114,141         5,932,515         850,979   

Leo Melamed

     228,945,715         26,865,352         2,086,568   

William P. Miller II

     250,040,090         6,667,906         1,189,639   

James E. Oliff

     249,601,313         7,445,972         850,350   

Edemir Pinto

     248,525,886         6,846,605         2,525,144   

Alex J. Pollock

     249,416,060         7,170,535         1,311,040   

John F. Sandner

     246,778,761         8,906,919         2,211,955   

Terry L. Savage

     249,637,120         7,436,711         823,804   

William R. Shepard

     226,185,792         30,960,752         751,091   

Dennis A. Suskind

     251,668,168         5,148,771         1,080,696   


There were a total of 29,585,470 broker non-votes in this proposal.

 

  2. The ratification of the appointment of Ernst & Young LLP as the Company’s independent public accounting firm for 2014 (ratified by the Class A and Class B shareholders voting together as a single class):

 

Votes For     Votes Against     Abstentions  
  282,707,606        4,201,656        573,843   

 

  3. The approval, by advisory vote, of the compensation of the Company’s named executive officers (approved by the Class A and Class B shareholders voting together as a single class):

 

Votes For     Votes Against     Abstentions  
  249,471,197        6,485,927        1,940,511   

There were a total of 29,585,470 broker non-votes in this proposal.

 

  4. Approval of an amendment to the CME Group Inc. Director Stock Plan (approved by the Class A and Class B shareholders voting together as a single class):

 

Votes For     Votes Against     Abstentions  
  247,251,655        9,342,931        1,303,049   

There were a total of 29,585,470 broker non-votes in this proposal.

 

  5. Approval of an amendment to the CME Group Inc. Incentive Plan for our Named Executive Officers (approved by the Class A and Class B shareholders voting together as a single class):

 

Votes For     Votes Against     Abstentions  
  250,513,253        6,209,508        1,174,874   

There were a total of 29,585,470 broker non-votes in this proposal.


  6. Approval of an amendment to the CME Group Inc. Certificate of Incorporation to modify the director election rights of certain Class B shareholders resulting in a reduction in the number of “Class B directors” from six to three (failed to receive the requisite approval):

Class A and Class B shareholders voting together:

 

Votes For     Votes Against     Abstentions  
  252,235,984        5,241,154        420,497   

There were a total of 29,585,470 broker non-votes in this proposal.

Class B-1 shareholders only:

 

Votes For

   

Votes Against

   

Abstentions

 
  99        180        3   

Class B-2 shareholders only:

 

Votes For

   

Votes Against

   

Abstentions

 
  138        190        8   

Class B-3 shareholders only:

 

Votes For

   

Votes Against

   

Abstentions

 
  160        321        18   

 

  7. The election of Class B Directors:

 

  a. The election of three Class B-1 Directors to serve until 2015 from a slate of four nominees (the nominees in bold were elected by the Class B-1 shareholders):

 

Name

   Votes For      Votes Against      Abstentions  

Jeffrey M. Bernacchi

     195         23         53   

Bruce F. Johnson

     174         43         54   

Howard J. Siegel

     193         29         49   

Brett C. Simons

     93         61         117   

 

  b. The election of two Class B-2 Directors to serve until 2015 from a slate of four nominees (the nominees in bold were elected by the Class B-2 shareholders):

 

Name

   Votes For      Votes Against      Abstentions  

Raymond S. Cahnman

     61         82         169   

Patrick W. Maloney

     113         73         126   

Ronald A. Pankau

     148         53         111   

David J. Wescott

     202         46         64   


  c. The election of one Class B-3 Director to serve until 2015 from a slate of four nominees (the nominee in bold was elected by the Class B-3 shareholders):

 

Name

   Votes For      Votes Against      Abstentions  

Gary M. Katler

     120         154         204   

Peter J. Kosanovich

     89         144         245   

Robert J. Prosi

     77         156         245   

Steven E. Wollack

     141         115         222   

 

  8. The election of Class B Nominating Committees:

 

  a. The election of five members of the Class B-1 Nominating Committee to serve until 2015 from a slate of ten nominees (the nominees in bold were elected by the Class B-1 shareholders):

 

Name

   Votes For      Votes Against      Abstentions  

William C. Bauman

     118         27         126   

Thomas A. Bentley

     87         50         134   

John G. Connelly

     88         52         131   

Michael J. Downs

     115         41         115   

John C. Garrity

     133         28         110   

Bradley S. Glass

     83         56         132   

Mark S. Kobilca

     52         68         151   

Douglas M. Monieson

     95         47         129   

Brian J. Muno

     92         53         126   

Jeremy J. Perlow

     62         64         145   

 

  b. The election of five members of the Class B-2 Nominating Committee to serve until 2015 from a slate of nine nominees (the nominees in bold were elected by the Class B-2 shareholders):

 

Name

   Votes For      Votes Against      Abstentions  

Jeffrey R. Carter

     154         32         139   

Richard J. Duran

     128         44         153   

Yra G. Harris

     198         23         104   

Timothy A. Lattner

     102         50         173   

Patrick J. Mulchrone

     201         27         97   

Robert J. Tierney

     65         66         194   

Stuart A. Unger

     140         46         139   

Gregory J. Veselica

     123         49         153   

Barry D. Ward

     115         50         160   


  c. The election of five members of the Class B-3 Nominating Committee to serve until 2015 from a slate of ten nominees (the nominees in bold were elected by the Class B-3 shareholders):

 

Name

   Votes For     Votes Against      Abstentions  

J. Kenny Carlin

     199        75         206   

Elizabeth A. Cook

     262        53         165   

Bryan P. Cooley

     246        57         177   

Lester E. Crockett Jr.

     139        99         242   

Laurence E. Dooley

     138        94         248   

Mario J. Florio

     168        71         241   

David P. Gaughan

     159     89         232   

Kevin P. Heaney

     113        95         272   

Scott D. Moore

     95        117         268   

Donald J. Sliter

     159     92         229   

 

  * Due to the tie, Messrs. Gaughan and Sliter came to an agreement whereby, Mr. Sliter would serve on the Class B-3 Nominating Committee.

Item 9.01. Financial Statements and Exhibits.

 

10.1    CME Group Inc. Director Stock Plan (Amended and Restated as of May 21, 2014)
10.2    Amended and Restated CME Group Inc. Incentive Plan for Named Executive Officers (Amended and Restated as of May 21, 2014)


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

    CME Group Inc.
    Registrant
Date: May 28, 2014     By:  

/s/ Kathleen M. Cronin

    Name:   Kathleen M. Cronin
    Title:  

Senior Managing Director, General

Counsel and Corporate Secretary


Exhibit Index

 

10.1    CME Group Inc. Director Stock Plan (Amended and Restated as of May 21, 2014)
10.2    Amended and Restated CME Group Inc. Incentive Plan for Named Executive Officers (Amended and Restated as of May 21, 2014)