CHICAGO, March 1 (Reuters) - A former chairman of the Chicago Mercantile Exchange will end a formal consulting arrangement with the exchange’s parent company at the end of the year, according to a regulatory filing.
The Mercantile Exchange, which merged with the Chicago Board of Trade to form CME Group Inc in 2007, agreed in 2005 to pay ex-Chairman Jack Sandner $200,000 a year as a consultant as long as he sits on the company’s board of directors.
Amended terms filed with the U.S. Securities and Exchange Commission on Friday show the arrangement will end on Dec. 31.
CME declined to explain the change and said it would not “comment on the future decisions of the board or our directors regarding their service.”
Sandner, 71, could not be reached.
The former chairman’s term on the board expires in May, and he has been nominated for election again. Under a CME policy approved last year, all directors are up for election on an annual basis.
Sandner’s departure represents a passing of the baton in the Chicago futures industry. He has been a member of the exchange’s board since 1978 and also serves on the board of the National Futures Association, an industry regulator.
Prior to signing the open-ended consulting contract in 2005, Sandner held the title of special policy advisor at the Chicago Mercantile Exchange.