The new senior management team will consist of nine Managing Directors, all reporting to McNulty, responsible for overseeing each major facet of the CME's business.
"This is a world-class management team that will position the CME as the premier global marketplace of the 21st century," McNulty said. "These changes will enable us to adopt an intense customer focus, enhance employee development and training opportunities, achieve the highest standards of excellence in the technology and systems area, and adopt a shareholder value metric system that will guide our decision making in the future."
Said CME Chairman Scott Gordon: "I applaud the strong new senior management structure Jim has put in place to pave the way for us to operate as an innovative and agile for-profit company. In less than two months at the helm, Jim has already demonstrated his ability to move us in the direction of transforming our marketplace and lived up to his reputation as a bold and decisive 'agent of change.'"
Joining the CME to assume two of the new positions are Satish S. Nandapurkar and Lewis C. Ting. Nandapurkar will serve as Managing Director of e-Business, responsible for developing a new line of e-business and business-to-business opportunities for the exchange. Nandapurkar has extensive experience in developing exotic options and other structured global derivative products and in developing applied technologies for trading them. Ting, who has more than 20 years of experience in human resources and international relations, will be Managing Director of Organizational Development, charged with creating new employee development and training initiatives at the CME. Ting has served as a senior consultant to companies on issues relating to human resources, employee development and organizational change.
Craig S. Donohue will assume the role of Managing Director of Business Development and Corporate/Legal Affairs. Donohue, who has helped spearhead the CME's strategic planning efforts for the past two years, has served as Senior Vice President and General Counsel. The areas of Business Development and Strategic Planning, Legal, Market Regulation, Corporate and Government Relations and Corporate Communications will report to Donohue.
Phupinder Gill will be Managing Director and President of the CME Clearing House Division. He has served as President of the Division, overseeing all aspects of the exchange's critical clearing function, since 1998.
Amy M. Savin, who has been Senior Vice President, GLOBEX® and Marketing Programs, will be Managing Director and Chief Marketing Officer, continuing to oversee the GLOBEX2 and Technology Marketing, Advertising and Market Data Services areas, and responsible for the exchange's Creative Services function.
David G. Gomach, currently Senior Vice President and Chief Financial Officer (CFO), will be Managing Director and CFO, responsible for Finance, Accounting, Internal Audits and Purchasing. Donald D. Serpico, Executive Vice President of Operations, will be Managing Director of Operations. In addition to overseeing Telecommunications and Trading Floor Operations, he will assume responsibility for the exchange's Building Operations, Security and Document Processing Services areas.
McNulty said he will also name a Managing Director of Product Development and Sales and a Managing Director and Chief Information Officer.
"As part of our organizational initiative, we are taking the first steps to implement a flatter organizational structure and adopt titles more in line with other major private sector financial services firms," said McNulty.
The CME has filed a registration statement with the Securities and Exchange Commission (SEC) for its demutualization plan, which will transform the member-owned institution into a for-profit, shareholder-owned corporation. When the SEC declares the registration statement effective, the exchange will send its members a proxy statement and hold a membership vote at least 20 days after. A favorable Internal Revenue Service tax ruling is also required for the transaction to proceed.
The CME's plan for demutualization was unveiled to its members in November 1999. Since he assumed the position of President and CEO on Feb. 7, 2000, McNulty has led the staff in developing the exchange's mission statement, values statement, decision-making model and five-year strategic vision. McNulty will present the team's recommendations to the CME Board of Directors in the second quarter.
