Jack Tobin
Managing Director and Chief Accounting Officer at CME
Executive
About Jack Tobin
Jack Tobin is Managing Director and Chief Accounting Officer (CAO) of CME Group, appointed effective April 1, 2015; he has been with CME/CBOT organizations for more than 23 years and is a registered certified public accountant. He previously served as Managing Director, Corporate Finance at CME (2007–2015), Director, Corporate Finance at CBOT Holdings and CBOT (2002–2007), and a principal consultant at PricewaterhouseCoopers (1997–2002). In September 2025, he notified CME of his voluntary retirement and will remain CAO through October 30, 2026 to support a smooth transition; the company reported no disagreements related to his retirement. Company performance over his tenure improved materially: revenues rose from $3.269B in FY2015* to $5.698B in FY2024*, EBITDA from $2.229B* to $4.273B*, and net income from $1.247B to $3.526B.
Company performance (CME Group)
| Metric (USD) | FY 2015 | FY 2024 |
|---|---|---|
| Revenues | $3,269.4M* | $5,698.4M* |
| EBITDA | $2,228.6M* | $4,273.5M* |
| Net Income - (IS) | $1,247.0M | $3,525.8M |
*Values retrieved from S&P Global
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| CME Group | Managing Director & Chief Accounting Officer | 2015–2026 | Accounting leadership; reporting continuity; retirement announced with transition plan |
| CME Group | Managing Director, Corporate Finance | 2007–2015 | Corporate finance leadership within CME |
| CBOT Holdings & Board of Trade of the City of Chicago | Director, Corporate Finance | 2002–2007 | Corporate finance leadership during pre-merger era |
| PricewaterhouseCoopers | Principal Consultant | 1997–2002 | Advisory/consulting experience; CPA credential |
Fixed Compensation
Compensation program design applicable to senior management/CAO
| Component | Key design | Notes |
|---|---|---|
| Base salary | Targeted near the 50th percentile of market; reviewed annually | Determined by role, responsibilities, performance, and market data |
| Annual cash bonus | Funded and paid based on company “cash earnings” achievement | Committee sets threshold/target/maximum and pays per formula; no discretionary overlay used in 2023 |
| Long-term equity | Annual grants in September; mix of 50% time-vested restricted stock and 50% performance shares | Awards approved by committee using percentage of base salary; grant date typically September 15 |
| Perquisites | Limited; aggregate value for NEOs in 2023 did not exceed $10,000; no tax gross-ups on perqs | Executive physicals, limited security/parking; aligns with “modest perquisites” philosophy |
| Governance practices | Clawback/recoupment policies; no excessive severance or tax gross-ups; best-practice program | At least 50% of target total comp tied to performance metrics; retention-oriented but risk-mitigated |
Note: Specific base, bonus targets, and payouts for Mr. Tobin are not individually disclosed in CME’s proxies; the CAO’s awards are approved by the compensation committee (not under CEO’s delegated authority).
Performance Compensation
Design levers and recent outcomes (program-level, applicable to CAO role)
| Incentive | Metric | Weighting | Target | Actual/Payout | Vesting / Period |
|---|---|---|---|---|---|
| Annual bonus | Cash earnings (company-level) | Not disclosed per individual | Committee-set threshold/target/max | 2023: Cash earnings ≈119.5% of target; bonuses paid ≈197.69% of target for NEOs (program formula, no discretion) | Cash bonus paid after year-end; calculated on salary paid during plan year |
| Performance shares (PS-TSR) | Relative TSR vs S&P 500 | 50% of PS mix | Target shares granted | 2020 grant for 2021–2023 certified at 169.44% of target; capped at 100% if TSR negative for future awards (cap applied starting 2023 awards) | 3-year performance; vest post-certification |
| Performance shares (PS-NIM) | Absolute net income margin | 50% of PS mix | Target level set ex ante | Metric added in 2023 in response to investor feedback to focus on operational control; targets set to require “significant effort” for 2024–2026 | 3-year performance; vest post-certification |
| Restricted stock (RS) | Time-based retention | 50% of annual equity award value | n/a | n/a | Time-vested schedule; dividends accrued and paid at vesting; no option repricing allowed under plans |
Program notes
- Annual equity awards approved prior to the grant date and issued based on pre-set formulas; annual grant date September 15 (or nearest business day).
- The CAO’s equity awards require committee approval (not delegated).
Equity Ownership & Alignment
| Policy/Practice | Details |
|---|---|
| Ownership guidelines | CEO: ≥5x salary; other named executive officers: ≥3x salary; senior management monitored annually; all NEOs satisfied, others satisfied or on track as of 2024 review |
| Hedging/Pledging | Derivative/hedging prohibited; pledging of Class A shares prohibited; no current pledging by directors/executive officers |
| Beneficial ownership concentration | None of directors, director nominees, or executive officers beneficially own >1% of any class of common stock (as of March 6, 2023) |
Note: Individual share counts for Mr. Tobin are not disclosed in the proxies reviewed; no indication of pledged shares for executives per policy and disclosures.
Employment Terms
| Topic | Terms/Status | Source |
|---|---|---|
| Retirement notice | Voluntary retirement notified Sept 9, 2025; remains CAO until Oct 30, 2026; no disagreements stated | |
| Severance plan (execs other than CEO) | Severance equals 2 weeks per year of service (min 4 weeks); max 38 weeks (performance terminations) or 52 weeks (position eliminations); possible severance in lieu of annual bonus if ≥6 months worked and not performance-based; health coverage/outplacement may be provided; acceleration of restricted shares vesting within severance period | |
| Approved retirement vesting | If retirement approved and conditions met (≥55 years old; ≥10 years service; ≥6 months’ notice; approved transition; remain through retirement): 75% of unvested RS vests at retirement; 25% of unvested PS continues to vest based on actual performance post-period | |
| Change-in-control (CIC) vesting | Effective for awards granted after March 1, 2024: double-trigger (requires CIC and qualifying termination for accelerated vesting under Omnibus Stock Plan amendment) | |
| Prior CIC treatment | Older plan language provided automatic vesting upon CIC with PS paid at greater of actual-to-date or target; superseded by 2024 amendment for new awards | |
| Employment contracts (policy) | Company uses employment contracts selectively; contracts include non-compete/non-solicit; do not exceed 2x base salary cash severance; no tax gross-ups (except noted insurance benefit for CEO); release required for severance |
Performance & Track Record
Program signals and company outcomes relevant to CAO’s tenure
- Relative performance share payout for 2021–2023 certified at 169.44% of target, indicating above-target TSR versus S&P 500 for that period; a cap at 100% applies when TSR is negative for awards starting in 2023.
- Annual bonus funding based on cash earnings delivered high payouts in recent years (≈196% of target in 2022; ≈198% of target in 2023), reflecting strong company-level financial execution tied to the program formula.
Compensation Structure Analysis
- Strengthened alignment: Added absolute net income margin metric to PS in 2023, enhancing focus on operational performance within management control; relative TSR retained with a downside cap when TSR is negative.
- Governance improvements: Switched CIC vesting from single-trigger to double-trigger for awards after March 1, 2024, reducing windfall risk and improving alignment with best practices.
- Delegation check: Equity awards for the CAO are not under CEO’s delegated grant authority, indicating direct committee oversight of CAO equity decisions.
- Pay-for-performance emphasis: At least 50% of target total compensation for NEOs tied to specific performance goals; annual bonus pool requires objective threshold achievement.
Risk Indicators & Red Flags
- Hedging/pledging risk: Prohibited; no current pledging among directors/executive officers.
- Option repricing: Prohibited under Omnibus Stock Plan.
- Change-of-control windfalls: Mitigated via double-trigger for awards granted after March 1, 2024.
- Transition risk: CAO retirement planned with extended transition through October 2026; company stated no disagreements, reducing operational risk signals.
Investment Implications
- Alignment and risk-mitigation improved: The addition of an absolute profitability metric (net income margin) and double-trigger CIC vesting reduces pay-for-performance dilution and windfall risk; prohibitions on hedging/pledging strengthen alignment.
- Retention/selling pressure: Approved retirement treatment can accelerate 75% of RS and continue 25% of PS vesting subject to performance; this may modestly increase supply from vesting events near retirement but is gated by conditions and performance outcomes. Monitoring future Form 4 filings is warranted.
- Execution context: High recent bonus funding and above-target PS-TSR outcomes reflect robust company-level performance; as CAO, Tobin’s transition is structured and non-contentious, suggesting limited near-term accounting or control risk.