Form 4: Paycom CEO Chad Richison Sells $7.9 Million in Company Stock Under Pre-Arranged Trading Plan

Paycom Software, Inc. CEO, President, and Chairman Chad R. Richison sold 30,000 shares of company common stock for approximately $7.9 million in early June 2025, pursuant to a Rule 10b5-1 trading plan.

Summary

• Chad R. Richison, CEO, President, Chairman, Director, and 10% Owner of Paycom Software, Inc. (PAYC), reported the sale of 30,000 shares of common stock.
• The sales occurred on June 4, 2025, and June 5, 2025.
• On June 4, 2025, 23,200 shares were sold at a weighted average price of $265.20 per share, with prices ranging from $265.00 to $265.61.
• On June 5, 2025, 6,700 shares were sold at a weighted average price of $265.31 per share, with prices ranging from $265.00 to $265.88.
• Additionally, 100 shares were sold on June 5, 2025, at a price of $266.15 per share.
• All reported sales were executed by Ernest Group, Inc. and were conducted pursuant to a Rule 10b5-1 trading plan adopted by Ernest Group, Inc. on December 12, 2024.
• Following these transactions, Chad R. Richison's indirect beneficial ownership through Ernest Group, Inc. stands at 3,217,249 shares.
• His direct beneficial ownership is 2,673,358 shares, which includes 43,148 unvested restricted stock units.
• Additional indirect beneficial ownership is held through various trusts for his children and grandchildren, totaling 6,528 shares, and a trust for his spouse holding 12,500 shares.

Sentiment

Score: 6

Explanation: The sentiment is neutral to slightly positive. While it reports insider selling, the crucial detail is that these sales were pre-planned under a Rule 10b5-1 plan, which mitigates concerns about management's immediate confidence in the company's prospects. It's a routine disclosure for a planned transaction.

Positives

• The sales were conducted under a pre-arranged Rule 10b5-1 trading plan, indicating a planned and systematic divestment rather than a reaction to immediate negative company news.

Negatives

• Insider selling, even if pre-planned, can sometimes be perceived by the market as a signal of reduced confidence, although this is mitigated by the 10b5-1 plan.

Risks

• Market perception of insider selling could lead to short-term negative sentiment or downward pressure on the stock price, despite the sales being part of a pre-arranged plan.

Future Outlook

This Form 4 filing does not contain any forward-looking statements or guidance regarding the company's future financial performance or strategic outlook.

Industry Context

This filing is a routine disclosure of insider stock transactions and does not provide information directly related to broader industry trends or competitive landscape within the human capital management (HCM) software sector.

Related Party Transactions

• The sales were conducted by Ernest Group, Inc., which is wholly owned by the reporting person (Chad R. Richison) and certain trusts for his children, for which he serves as trustee. The reporting person is the sole director of Ernest Group, Inc. This constitutes a related party transaction as the entity is controlled by the reporting person.

Stakeholder Impact

• Shareholders may interpret insider selling, even if planned, with caution, potentially leading to short-term negative sentiment. However, the disclosure of a 10b5-1 plan helps to clarify that these are not opportunistic sales based on new, undisclosed information.

Key Dates

Keywords

Paycom Software, PAYC, Chad R. Richison, Insider Trading, Form 4, Stock Sale, Rule 10b5-1, Beneficial Ownership, CEO, Director, 10% Owner