UPDATE: CME Group's Carey Secures $500,000 Consulting Deal
February 28 2012 - 5:53PM
Dow Jones News
The former vice chairman of CME Group Inc. (CME) will earn
$500,000 from helping to lure more overseas-based companies to the
exchange operator's agricultural futures markets and boosting its
interaction with regulators.
An eight-month consulting deal with CME board member Charles
Carey extends the advocacy role held by the former chairman of the
Chicago Board of Trade, which secured board seats and other
guarantees as part of the CBOT's 2007 merger with the larger
Chicago Mercantile Exchange.
Carey, who also maintains a proprietary trading group based in
Chicago, is a third-generation member of Chicago's futures industry
and traded grains on the CBOT floor before becoming chairman of
that exchange in 2003. He and Terry Duffy, then CME's chairman and
now executive chairman of CME Group, put together the $11.3 billion
deal that formed the world's biggest futures exchange operator.
The consulting deal between CME and Carey was signed Oct. 13 of
last year and runs through CME's annual meeting May 23 of this
year, according to documents filed by the exchange group Tuesday.
Fees were slated to be paid in four installments of $125,000 each,
with Carey delivering reports to Duffy every two months. CME
revealed the contract in a regulatory filing Tuesday.
Carey will remain on CME's board through 2013, though his role
as vice chairman, a paid position, ended in late 2011. A guarantee
of board seats allotted to CBOT representatives as part of the 2007
merger is also due to end at this year's annual meeting in May, and
CME has said that it intends to begin shrinking its 32-member board
starting this year, when two seats will be trimmed.
In fiscal 2010, the most recent year for which figures were
supplied to regulators, Carey numbered among the highest-paid
directors on CME's board. Through CME's annual meeting in 2010 the
company paid Carey a $750,000 annual stipend alongside compensation
and stock awards valued at a combined $366,931, according to CME
documents.
-By Jacob Bunge, Dow Jones Newswires; 312 750 4117;
jacob.bunge@dowjones.com
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