Derek Sammann
Senior Managing Director, Global Head of Commodities Markets at CME
Executive
About Derek Sammann
Derek L. Sammann, 56, is Senior Managing Director and Global Head of Commodities Markets at CME Group, a role he has held since November 2021. He joined CME in 2006 and previously led Financial Products & Services (since 2009) and Commodities & Options Products (since 2014), after serving as Global Head of FX Products upon joining; earlier, he was Managing Director, Global Head of FX Options & Structured Products at Calyon (1997–2006) . Performance linkage for his pay is strong: 2024 annual bonuses were determined by company cash earnings (CME achieved ~117.3% of target, paying 186.32% of target), and his 2022–2024 performance share tranche paid out at 108.7% based on 52.2nd percentile relative TSR versus the S&P 500 .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| CME Group | Senior Managing Director, Global Head of Commodities Markets | Since Nov 2021 | Leads global commodities franchise (products, strategy, execution) |
| CME Group | Senior Managing Director, Commodities & Options Products | Since 2014 | Oversaw commodities and options product lines |
| CME Group | Senior Managing Director, Financial Products & Services | Since 2009 | Led financial products businesses (rates, FX, equity derivatives) |
| CME Group | Global Head of Foreign Exchange Products | 2006 onward | Drove FX product strategy after joining CME |
| Calyon CIB (Credit Agricole) | Managing Director, Global Head of FX Options & Structured Products | 1997–2006 | Ran global FX options/structured products platform |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| Gulf Mercantile Exchange | Board Member | Current | External market governance role |
| COMEX | Board of Governors | Current | External market governance role |
| Commodities Markets Council | Treasurer & Board Member | Current | Industry advocacy and standards |
| Shanghai Gold Exchange | International Advisory Board | Current | International market advisory |
| CFTC AEEMAC & EEMAC | Member | Current | Advisory committees on Agricultural & Energy and Environmental Markets |
| Security Traders Association | Listed Options Committee | Current | Industry committee role |
Fixed Compensation
| Metric | 2023 | 2024 |
|---|---|---|
| Base Salary ($) | 525,000 | 525,000 |
| All Other Compensation ($) | 131,655 | 126,399 |
| Change in Pension Value ($) | 64,365 | 30,234 |
| Total Reported Compensation ($) | 3,412,041 | 3,433,504 |
| Note | Mr. Sammann was not an NEO prior to 2023 | — |
Performance Compensation
Annual Bonus (Cash)
| Item | Detail |
|---|---|
| Target bonus as % of salary | 100% (max 200%) |
| 2024 metric | Company cash earnings (committee may make limited adjustments) |
| 2024 performance | ~117.3% of target cash earnings; payout set at 186.32% of target |
| 2024 actual bonus ($) | 978,180 |
2024 Equity Program Structure (Granted Sept 16, 2024)
| Component | Metric | Weight | Target Shares | Fair Value at Grant ($) | Vesting |
|---|---|---|---|---|---|
| PSU (TSR) | 2025–2027 TSR vs S&P 500 | 50% | 1,802 | 552,313 | Cliff after 3-year period; 0–200% payout; max capped at 100% if absolute TSR is negative |
| PSU (NIM) | Absolute Net Income Margin (2025–2027) | 50% | 1,802 | 433,795 | Cliff after 3-year period; 0–200% payout; NIM defined via Adjusted NI/Adjusted Net Revenue formula |
| RS | Time-vested RS | — | 3,604 | 787,582 | 25% per year over 4 years |
Payout curves and definitions:
- TSR relative percentiles: 25th=50% payout, 50th=100%, 75th=200%; negative absolute TSR caps payout at 100% .
- NIM: Below threshold=0%, threshold=50%, target=100%, maximum=200%; NIM formula uses non-GAAP adjustments detailed in the proxy .
PSU Results (Prior Cycle, Granted Sept 15, 2021; Performance 2022–2024)
| Award | Target Shares | Actual TSR Percentile | Payout % of Target | Actual Shares Earned | Vesting Certification |
|---|---|---|---|---|---|
| PSU (TSR 2022–2024) | 3,572 | 52.2nd percentile | 108.7% | 3,883 | Certified Mar 3, 2025; vested Mar 15, 2025 |
Equity Award Targeting (Value-Based)
| Item | Value |
|---|---|
| 2024 annual equity award target as % of base | 300% |
| 2024 target value ($) | 1,575,000 |
| 2024 actual vs target | 100% of target delivered |
Stock Vested (Realization in 2024)
| Metric | 2024 |
|---|---|
| Shares acquired on vesting | 10,684 |
| Value realized on vesting ($) | 2,321,791 |
Equity Ownership & Alignment
Beneficial Ownership (as of Mar 10, 2025)
| Class | Shares Beneficially Owned | Notes |
|---|---|---|
| Class A | 34,842 | Includes 12,239 shares in trust and 10,811 shares in spouse’s name |
| Class B (any) | — | None reported |
| Shares outstanding (Class A) | 360,379,572 | As of Mar 10, 2025 |
- Ownership policy: NEOs must hold shares equal to ≥3x base salary; five years to comply; as of 2024 review, all NEOs had satisfied guidelines or were on track within five years .
- Hedging/derivatives prohibited; pledging of Class A shares by directors/executive officers prohibited; currently, none have pledged shares .
Unvested and Unearned Equity (as of Dec 31, 2024)
| Grant Date | Type | Shares Unvested/Unearned | Reference Value ($) | Notes |
|---|---|---|---|---|
| 9/16/2024 | RS (time-vested) | 3,604 | 836,957 | Vests 25% annually over 4 years |
| 12/31/2024 | PSU (TSR 2025–2027) | 901 | 209,239 | Threshold basis shown |
| 12/03/2024 | PSU (NIM 2025–2027) | 901 | 209,239 | Threshold basis shown |
| 12/31/2023 | PSU (TSR 2024–2026) | 952 | 221,083 | Threshold basis shown |
| 12/05/2023 | PSU (NIM 2024–2026) | 952 | 221,083 | Threshold basis shown |
| 12/31/2022 | PSU (TSR 2023–2025) | 2,064 | 479,323 | Threshold basis shown |
| 12/31/2021 | PSU (TSR 2022–2024) | 3,883 | 901,749 | Earned at 108.7%; vested Mar 2025 |
Employment Terms
Severance and Change-in-Control Economics (as of Dec 31, 2024)
| Scenario | Cash Severance ($) | Equity Vesting Value ($) | Health & Welfare ($) | Other Accrued ($) | Total ($) |
|---|---|---|---|---|---|
| Involuntary for Cause | — | — | — | — | — |
| Voluntary | — | 2,535,719 | — | — | 2,535,719 (retirement vesting eligible) |
| Voluntary for Good Reason | — | — | — | — | — |
| Involuntary Not for Cause | 888,462 | 901,749 | 22,496 | — | 1,812,707 |
| Change in Control | 888,462 | 5,768,593 | 22,496 | — | 6,679,551 (double-trigger for awards granted after Mar 1, 2024) |
| Death | — | 5,768,593 | — | 978,180 | 6,746,773 |
| Disability | — | 5,768,593 | — | 978,180 | 6,746,773 |
- CIC vesting: Omnibus Stock Plan amended to change vesting on CIC from single-trigger to double-trigger for awards granted after March 1, 2024 .
- Retirement eligibility: Value shown for “Voluntary” includes retirement vesting treatment given Mr. Sammann met age/service requirements as of Dec 31, 2024 (subject to other conditions) .
Retirement and Deferred Compensation
| Plan | 2024 Detail |
|---|---|
| Pension Plan (cash balance) | 17 years credited; present value $424,787; participants fully vested after 3 years |
| Non-Qualified Deferred Compensation | Registrant contributions $115,009; aggregate earnings $225,095; year-end balance $2,264,452 |
Clawback and Policies
- Compensation recoupment policies are in place; CME’s executive officer clawback policy effective Oct 2, 2023 (Exhibit 97.1 in 10-K) .
- Insider trading policy prohibits hedging and pledging by executives/directors .
Compensation Structure Analysis
- Cash vs equity mix: For NEOs in aggregate, 2024 mix was ~11% base salary, 30% annual cash bonus, 55% equity, 4% other—indicating high at-risk pay consistent with performance orientation .
- Shift to PSUs/RS: 2024 awards split 50% PSUs on TSR and 50% PSUs on absolute net income margin, plus time-vested RS—aligns with both market-relative and profitability goals .
- Performance rigour: 2024 bonuses were formulaic off cash earnings; payout set directly from performance (186.32% of target), with no upward discretion applied .
- Repricing/modification: None disclosed; equity plan updated to double-trigger CIC vesting for awards after Mar 1, 2024—shareholder-friendly .
Performance & Track Record
- PSU outcomes: 2022–2024 TSR at 52.2nd percentile vs S&P 500; paid at 108.7%—above target, suggesting alignment with shareholder returns over that period .
- Stock vested: Realized $2.32M equity value on 10,684 shares vesting in 2024, reflecting ongoing retention and performance delivery .
Investment Implications
- Alignment: High equity weighting, PSU metrics (relative TSR and absolute net income margin), and ownership guidelines (3x salary) support strong pay-for-performance and shareholder alignment; hedging/pledging prohibitions and zero pledging reduce governance risk .
- Retention and overhang: Retirement eligibility provides continued/accelerated treatment in certain scenarios (notably voluntary retirement and CIC), reducing risk of losing unvested awards on exit but creating visible vesting “supply” around PSU cliffs (2025–2027 cycles) and RS schedules (through 2028) .
- Severance exposure: Modest cash severance under severance plan ($888k) with substantial equity treatment in CIC ($5.77M value at 12/31/24), now subject to double-trigger—limiting windfall risk while preserving retention .
- Performance signal: Above-target PSU outcome (108.7% for 2022–2024) and formulaic bonus payout at 186.32% in 2024 indicate compensation is tracking objective company performance metrics, a constructive signal for incentive credibility .