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

Paycom's CEO, Chad Richison, executed multiple sales of common stock on May 12th and 13th, 2025, through Ernest Group, Inc., under a pre-arranged Rule 10b5-1 trading plan.

Summary

• Chad Richison, CEO, President, and Chairman of Paycom Software, Inc., reported changes in beneficial ownership of Paycom stock.
• The report details multiple sales of common stock on May 12th and 13th, 2025.
• These sales were executed under a Rule 10b5-1 trading plan adopted by Ernest Group, Inc. on December 12, 2024.
• The sales occurred at varying prices, ranging from $255.00 to $261.54 per share.
• Richison also holds shares indirectly through various trusts, including those for his children and grandchildren.
• The total number of shares sold on May 12th and 13th was 60,426.
• Following the reported transactions, Richison continues to beneficially own a significant number of shares, both directly and indirectly.

Sentiment

Score: 5

Explanation: The document itself is neutral, simply reporting transactions. The sentiment is neutral as the sales were pre-planned.

Industry Context

Sales by insiders are a common occurrence and are often pre-planned through Rule 10b5-1 trading plans to avoid accusations of trading on material non-public information. The market typically views these sales in the context of the overall holdings of the insider and the reasons provided for the sale.

Comparison to Industry Standards

• Comparing Richison's transactions to other CEOs in the software industry, similar sales under 10b5-1 plans are frequent.
• For example, executives at companies like Workday and Salesforce have also utilized such plans to diversify their holdings.
• The scale of the sales is within a normal range for executives holding significant equity in their companies.
• It's important to consider the percentage of total holdings being sold rather than just the absolute number of shares.

Stakeholder Impact

• The stock sales could have a minor negative impact on shareholder sentiment in the short term.
• However, the existence of a pre-arranged trading plan mitigates concerns about insider information being used for personal gain.

Key Dates

Keywords

Paycom, Chad Richison, Stock Sale, Form 4, Beneficial Ownership, Rule 10b5-1, Ernest Group, Insider Trading