Form 4: Paychex CFO Robert Schrader Reports Stock Transactions
SEC Form 4
Robert Schrader, CFO of Paychex, reports the acquisition and disposition of company stock and stock options.
Summary
- On July 15, 2024, Robert L. Schrader, the Senior VP and CFO of Paychex Inc., reported transactions involving Paychex common stock.
- Schrader disposed of 1,824 shares of common stock at a price of $121.63 to satisfy tax withholding obligations related to the vesting of restricted stock units.
- He also acquired 2,466 restricted stock units and 3,215 restricted shares, both awarded under the company's stock incentive plan.
- Following these transactions, Schrader directly owns 17,137 shares of common stock and indirectly owns 315 shares through a 401(k).
- He also holds various stock options with exercise prices ranging from $73.53 to $121.63, expiring between 2029 and 2034.
Sentiment
Score: 5
Explanation: The sentiment is neutral as the filing simply reports stock transactions related to executive compensation.
Positives
- The award of restricted stock units and restricted stock to the CFO signals a continued alignment of his interests with the long-term performance of the company.
Industry Context
This filing is a routine disclosure of insider transactions, which are common for executives at publicly traded companies. These transactions are often related to compensation packages and do not necessarily indicate a change in the executive's confidence in the company.
Comparison to Industry Standards
- Executive compensation packages including stock options and restricted stock units are standard practice among publicly traded companies like Paychex.
- Companies such as ADP and Intuit also utilize similar equity-based compensation to align executive interests with shareholder value.
- The vesting schedules and exercise prices of the options are typical for executive compensation plans.
Stakeholder Impact
- The transactions have a minimal direct impact on stakeholders, as they primarily reflect internal compensation adjustments for the CFO.
Key Dates
| Date | Description |
|---|---|
| 07/10/2020 | Date exercisable for stock options with a price of $85.46. |
| 07/15/2021 | Date exercisable for stock options with a price of $73.53. |
| 07/15/2022 | Date exercisable for stock options with a price of $112.67. |
| 07/15/2023 | Date exercisable for stock options with a price of $115. |
| 07/15/2024 | Date of stock transactions and date exercisable for stock options with a price of $120.86 and $121.63. |
| 10/15/2024 | Date exercisable for stock options with a price of $117.98. |
| 07/09/2029 | Expiration date for stock options with a price of $85.46. |
| 07/14/2030 | Expiration date for stock options with a price of $73.53. |
| 07/14/2031 | Expiration date for stock options with a price of $112.67. |
| 07/14/2032 | Expiration date for stock options with a price of $115. |
| 07/14/2033 | Expiration date for stock options with a price of $120.86 and $117.98. |
| 07/14/2034 | Expiration date for stock options with a price of $121.63. |
| 07/17/2024 | Date of the report. |
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