Form 4: Paycom CEO Chad Richison Sells Shares Under 10b5-1 Trading Plan

Sentiment:

SEC Form 4


Paycom's CEO, Chad Richison, executed multiple sales of common stock on June 4, 2024, under a pre-arranged 10b5-1 trading plan.

Summary

  • Chad Richison, CEO, President, and Chairman of Paycom Software, Inc., sold shares of common stock on June 4, 2024.
  • The sales were executed under a pre-arranged Rule 10b5-1 trading plan adopted on February 16, 2024.
  • The transactions involved multiple sales at varying prices, ranging from $144.16 to $149.01.
  • Richison sold shares directly and indirectly through Ernest Group, Inc., where he is the sole director and owns the company through trusts.
  • He also indirectly owns shares through various irrevocable trusts for the benefit of his children and grandchildren, as well as a trust for his spouse.
  • The reporting person has agreed to voluntarily disgorge to Paycom Software, Inc. any profits realized from matchable transactions occurring within less than six months of the previously reported purchase transaction.

Sentiment

Score: 5

Explanation: The document is a standard SEC filing related to stock sales by an insider. It doesn't inherently convey positive or negative sentiment, as it simply reports transactions.

Industry Context

Sales by insiders are a common occurrence and are often pre-planned to avoid accusations of trading on non-public information. The use of a 10b5-1 plan provides a legal framework for insiders to sell shares over a period of time.

Key Dates

DateDescription
2023-12-14Reporting person's purchase of one share of common stock at a price of $201.86.
2024-02-16Date of adoption of the joint Rule 10b5-1 trading plan by the reporting person and Ernest Group, Inc.
2024-06-04Date of the reported stock sale transactions.
2024-06-05Date of signature of the Form 4 filing.

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