- Significant signs for push-out forces
- After almost five years on the job
- Laud and praise for Gill
- Terry Duffy takes over
(management-change.com) — Chicago, Illinois, November 10, 2016 — Phupinder Gill, chief executive of CME Group, leaves. It is an abrupt change. As announced by CME Group Inc. in a news release on Thursday, November 10, 2016, Phupinder Gill leaves the post as Chief Executive Officer at the world’s largest futures exchange operator in a surprising move after almost five years on the job, effective immediately.
Gill leaves the company effective December 31, 2016.
Gill’s duties are taken over by Terry Duffy, most recently Executive Chairman and President at CME Group Inc.
CME Group has already removed the name of Gill from the leadership page and lists Duffy as Chairman and CEO.
Gill has resigned more than three years before the end of his contract.
Gill’s move was announced just a year after Gill renewed his employment contract to 2019.
The move is part of a management shake-up.
“The right time for me to retire”
Gill’s sudden departure is explained as follows. Gill said: “It is the right time for me to retire.”
Generally speaking, it is often a danger signal for stockholders when a CEO leaves the post abruptly and without a reasonable explanation.
CME Group said: Phupinder Gill “has informed the Company’s Board of Directors that he is retiring from the organization and Board, at year end, December 31, 2016”.
Precise information about the future plans of Gill was not immediately available.
Share price rise since December 2012
The change follows a rise in the share price of CME Group Inc. since December 2012.
On the job as CEO since 2012
Gill has been the Chief Executive Officer of CME Group Inc. since May 2012.
Gill, a 28-year veteran of CME Group, has served in numerous roles during his tenure.
Previously he served as President of CME Group since 2007 and as President and Chief Operating Officer of CME Holdings and of CME since January 1, 2004.
In addition to running the firm’s day-to-day operations, he was responsible for implementing strategic initiatives to expand CME Group’s core business and pursue new global growth opportunities in over-the-counter and emerging markets.
From 2000 to 2003, Gill served as Managing Director and President of CME Clearing, the largest derivatives clearing house in the United States, which includes the Clearing, Risk Management and Audit Departments.
In 2003, he led the implementation of the company’s historic clearing agreement with the Chicago Board of Trade (CBOT), under which CME provided clearing (back-office processing) for all CBOT products.
This agreement helped pave the way for the 2007 merger of the two institutions.
Gill joined the company in February 1988 and held positions of increasing responsibility within CME Clearing before joining the Office of the CEO in 2004.
Gill serves on CME Group’s Board of Directors, as well as the board of the World Federation of Exchanges (WFE) and WFE’s Regulatory Policy Committee.
He also serves on the Board of Directors of First Midwest Bancorp Inc.
He is a member of CME Group’s Competitive Markets Advisory Council and sits on the boards of The Alexander Maxwell Grant Foundation, CME Group Foundation and CME Group Community Foundation.
“During the next two months, Gill will work with Duffy, Durkin and the CME management team on the transition,” the company said.
Significant signs for push-out forces
It is not completely certain what forces eventually triggered Phupinder Gill’s move.
The Push-out Score™ determined by management-change.com suggests significant signs for push-out forces that may have contributed to the management change.
Read the full story in the management-change.com report 43.2016 ($).