Patrick W. Maloney
Director at CME
Board
About Patrick W. Maloney
Patrick W. Maloney, age 63, has served on CME Group’s board since 2020 and is currently an independent director serving on the Risk Committee and Finance Committee. He has been a CME member since 1985 and works as an independent floor broker in the Eurodollar (now SOFR) option pit (2007–present), bringing an active market participant’s perspective to board deliberations. The board determined he is independent under Nasdaq and CME’s categorical standards; in 2024 each director attended more than 75% of combined board/committee meetings, and board committees collectively had ~99% attendance across 52 meetings.
Past Roles
| Organization | Role | Tenure | Committees/Impact |
|---|---|---|---|
| CME Group | Independent floor broker in Eurodollar (now SOFR) option pit | 2007–present | Active market participant perspective to board; daily trader interaction feedback loop |
| CME Group | Full-time floor trader and broker | Since 1985 | Long-standing market practitioner |
| CME Group (functional committees) | Committee member (Pit, Nominating, Arbitration, Booth Space, Floor Practices) | Various: 1992–1999 | Operational market governance exposure across floor practices, nominations, dispute resolution |
External Roles
| Organization | Role | Tenure | Committees/Impact |
|---|---|---|---|
| CME Group Political Action Committee | Director | Not disclosed (current role indicated) | Political engagement for industry advocacy |
Board Governance
| Committee | Role | 2024 Meetings | Notes |
|---|---|---|---|
| Risk Committee | Member | 5 | Oversees ERM, cybersecurity, compliance, resiliency; quarterly CISO updates |
| Finance Committee | Member | 5 | Oversees capital structure, investment policy, dividend policy, budgets |
- Independence: The nominating and governance committee and board classified all current directors other than the CEO as independent in early 2025; Maloney is independent.
- Attendance: Board held six regular and one special meeting (7 total) in 2024; each director attended >75% of combined board and committee meetings. Average committee attendance was ~99% across 52 meetings.
- Executive sessions: Independent directors meet in executive session quarterly, chaired by the Lead Director.
- Director workload limits: Non‑employee directors may not serve on more than four public company boards.
Fixed Compensation
| Year | Fees Earned or Paid in Cash | Stock Awards (Director Stock Plan) | All Other Compensation | Total |
|---|---|---|---|---|
| 2024 | $112,000 | $145,187 | $0 | $257,187 |
- Directors can elect to receive part/all of annual cash stipends in stock at grant-date closing price; stock under Director Stock Plan is not subject to vesting restrictions. Non‑executive directors may defer compensation; no pensions/health benefits for non‑executive directors.
Performance Compensation
| Component | Performance Metric(s) | Notes |
|---|---|---|
| Director cash stipends/fees | None disclosed | Comprised of annual cash stipends, committee retainers, chair fees, subsidiary/functional meeting fees |
| Director stock awards | None disclosed | Shares granted under Director Stock Plan; not subject to vesting restrictions (no performance hurdles) |
CME’s proxy does not disclose performance metrics tied to director compensation. Director equity is granted as stock (no vesting/performance conditions), and cash is driven by fixed retainers/fees.
Other Directorships & Interlocks
- No public company directorships are disclosed in Maloney’s proxy biography for the past five years.
Expertise & Qualifications
- Market practitioner: decades of trading/broking experience; daily engagement with traders in SOFR options informs market integrity and client perspective.
- Prior committee service on floor operations/governance functions (pit/floor practices/arbitration) adds practical oversight context.
- Risk and Finance committee experience contributes to ERM/cyber oversight and capital policy review.
Equity Ownership
| Class A Shares | Class B-2 Shares |
|---|---|
| 3,556 | 1 |
- Anti‑hedging/anti‑pledging: Insider trading policy prohibits short selling and hedging; directors and executive officers are prohibited from pledging Class A shares.
- Stock ownership guidelines: CME states “meaningful stock ownership guidelines” for directors (specific multiples not detailed in proxy summary).
Governance Assessment
- Committee engagement: Active membership on Risk and Finance aligns with CME’s highly regulated, risk‑always‑on environment—positive for board effectiveness and investor confidence.
- Independence with market ties: As an active CME member/floor broker, Maloney could have transactional relationships with CME (trading fees via clearing). CME’s independence review examines such payments to confirm ordinary‑course terms within Nasdaq thresholds and applies a board conflict of interest policy—mitigating conflict risk.
- Attendance/effort: Board and committee attendance metrics indicate robust engagement; all directors exceeded 75% attendance and committees averaged ~99%.
- Alignment: Direct stock ownership (Class A and a Class B‑2 share) plus anti‑hedging/pledging policy support investor alignment; director stock is granted without vesting/performance conditions (typical for directors).
- RED FLAGS:
- Potential conflict from being an active market participant (floor broker). Mitigation via independence testing of payments, conflict policy, and heavy public‑director representation on regulatory committees.
- No evidence of related‑party transactions, hedging, pledging, or option repricing involving Maloney in proxy disclosures. Audit Committee oversees related‑party approvals.
Context on investor sentiment: CME’s 2024 say‑on‑pay received 87% support following shareholder engagement and program enhancements, signaling constructive governance responsiveness (company‑level signal).