Free Agent Compensation
The practice of free agent compensation began after the 1977 season as part of the collective bargaining agreement (referred to as CBA from here on) agreed on in the summer of 1976. The first draft picks to be swapped were for the 1978 amateur draft and the rules have been modified over the years, including an ill-fated major league free agent compensation draft between 1981 and 1985. Currently, only players that are offered salary arbitration or are signed before the deadline to offer salary arbitration (December 1st) net their former team any draft picks as long as they are classified as a "Type A" or "Type B" free agent using the Elias Sports Bureau year-end player rankings. The "Type C" classification(top 51-60 percent at their position) was eliminated with the current CBA and the "Type A" free agents are now the top 20 percent at their position (formerly top 30 percent) and "Type B" free agents are considered from top 21-40 percent at their position (formerly 31-50). Also, a team's first round draft pick is protected if it's in the upper half of the draft, i.e a top 15 pick.
 Type A
Under the current CBA, a "Type A" free agent nets the team losing the player a first round pick and a supplemental pick between the first and second round. It's important to note that the team MUST offer the free agent salary arbitration to get the draft picks or the player must be signed before the deadline to offer arbitration (December 1st). Teams with a pick in the top half of the draft though are protected and would lose their second round pick instead. Also, if a team signs more than one "Type A" free agent, they would give up their draft picks in subsequent rounds with the teams losing the higher ranked free agent getting the higher pick.
Ryan Dempster - Dempster resigned with the Cubs so no draft picks were awarded.
Bob Howry - Cubs did not offer arbitration to Howry and did not receive any draft picks after he signed with the San Francisco Giants.
Kerry Wood - Cubs did not offer arbitration to Kerry Wood, surprisingly, and did not receive any draft picks after he signed with the Cleveland Indians.
Alfonso Soriano - Signed with the Cubs, but since their pick for the 2007 Amateur Draft was in the top half (3rd overall), their second round pick was awarded to the Nationals. The Nationals also were awarded a supplemental pick between the first and second round. The Nationals selected LHP Josh Smoker with the supplemental pick and RHP Jordan Zimmerman with the second round pick.
Aramis Ramirez - Resigned with the Cubs so no compensation.
Bob Howry - The Cubs first round pick was protected (13th overall) but they gave up their second round pick and the Cleveland Indians were given a supplemental first round pick for this signing. The Indians selected LHP David Huff with the supplemental pick and 2B Joshua Rodriguez with the second round pick.
Scott Eyre - Eyre was rated lower than Howry, so the San Francisco Giants received the Cubs third round pick and a supplemental pick. The Giants selected SS Emmanuel Burriss with the supplemental pick and LHP Clayton Tanner with the third round pick.
LaTroy Hawkins - Cubs signed Hawkins from the Minnesota Twins giving up their first round pick (25th overall) and awarding the Twins a supplemental pick between the first and second round. The Twins selected RHP Steven Waldrop with the first round pick and RHP Jay Rainville with the supplemental pick.
Mike Remlinger - The Cubs first round pick was protected (6th overall), but they gave up their second round pick to the Atlanta Braves and the Braves were awarded a supplemental first round pick as well. The Braves selected catcher Jarrod Saltalamacchi with the supplemental pick and LHP Jo-Jo Reyes with the second round pick.
Kevin Tapani - The Cubs first round pick was protected (10th overall), but they gave up their second round pick to the Chicago White Sox along with supplemental first round pick. The White Sox selected OF Brett Caradonna and RHP Jeff Weaver with their picks. The White Sox were unable to sign Weaver though and he ended up being the Tigers first round pick (14th overall) in the 1998 Amateur Draft. In an interesting twist of fate, the Cubs selected RHP Jon Garland with their first round pick (10th overall) and traded him to the White Sox in 1998 for RHP Matt Karchner.
Mel Rojas - The Montreal Expos (now Washington Nationals) received three supplemental first round picks when the Cubs signed Mel Rojas. They selected RHP Chris Stowe (37th overall), RHP Bryan Hebson (44th overall)and RHP T.J. Tucker(47th overall) with their picks.
Greg Madduxx - The Cubs received the Atlanta Braves first round pick and a supplemental first round pick when the Braves signed Maddux. The Cubs used those picks on RHP Jon Ratliff (24th overall) and 3B Kevin Orie (29th overall).
Jose Guzman - The Cubs though gave up their second round pick to the Texas Rangers plus awarding them a first round supplemental pick when they signed Guzman. The Rangers selected 3b Mike Bell (30th overall) and 2b Edwin Diaz (52nd overall) with their picks.
 Type B
A list of Cubs to be classified as "Type B" free agents over the years. "Type B" free agents are now considered between the top 21-40 percent at their position. A team losing a "Type B" free agent is rewarded a supplemental pick between the first and second rounds of the draft.
Under the prior collective bargaining agreement, they were awarded a second round pick, along with a supplemental draft pick between the first and second round and "Type B" players were considered in the top 31-50 percent at their position.
Rich Harden - not offered arbitration
Jason Kendall - Cubs received the 41st pick in the draft when the Milwaukee Brewers signed Kendall before the December 1st arbitration deadline. The Cubs selected shortstop Ryan Flaherty with the pick.
Juan Pierre - Cubs received the 48th pick in the draft when the Los Angeles Dodgers signed Pierre. The Cubs selected Auburn catcher Josh Donaldson with the pick. He was later part of a trade to the Oakland Athletics for RHP Rich Harden in July of 2008.
Mark DeRosa - Cubs signed Mark DeRosa from Texas awarding them the 54th pick in the draft. The Rangers selected RHP Tommy Hunter with the pick.
Ted Lilly - Cubs signed Ted Lilly from Toronto awarding them the 56th pick in the draft. The Blue Jays selected RHP Trystan Magnuson with the pick.
Jacque Jones - The Minnesota Twins received the Cubs' 4th round pick with the Cubs second and third round picks going to the Cleveland Indians and San Francisco Giants for the signings of Bob Howry and Scott Eyre. The Twins selected 1b Whitney Robbins with the pick.
Antonio Alfonseca & Kenny Lofton.
Steve Trachsel - The Cubs received the third round pick of the Tampa Bay Rays for the 2000 Amateur Draft when the Rays (then Devil Rays) signed Trachsel. The Cubs selected OF Nic Jackson with the pick.