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

Paycom's CEO, Chad Richison, sold 3,574 shares of common stock at an average price of $255.01, according to a recent SEC Form 4 filing.

Summary

• Chad Richison, CEO, President, and Chairman of Paycom Software, Inc., reported a transaction involving the sale of Paycom common stock on May 9, 2025.
• The sale involved 3,574 shares at a weighted average price of $255.01.
• The transaction was executed under a pre-arranged Rule 10b5-1 trading plan adopted by Ernest Group, Inc. on December 12, 2024.
• Following the transaction, Richison's direct holdings include 2,673,358 shares and indirect holdings through various trusts total 3,303,675 shares.
• These trusts include those for his children and grandchildren, where he serves as the trustee.

Sentiment

Score: 5

Explanation: The sentiment is neutral as the transaction is a routine sale under a pre-arranged trading plan. It doesn't necessarily indicate a positive or negative outlook for the company.

Industry Context

Sales by insiders are a common occurrence and are often pre-planned through 10b5-1 trading plans to avoid accusations of trading on material non-public information. The market typically analyzes the size and frequency of such sales to gauge insider sentiment.

Comparison to Industry Standards

• Comparing insider sales activity to peers like Workday (WDAY) and Automatic Data Processing (ADP) can provide context.
• For example, if executives at comparable companies are also selling shares, it might reflect broader industry trends or personal financial planning rather than company-specific concerns.
• However, if Paycom's insider selling is significantly higher than its peers, it could raise concerns among investors.

Stakeholder Impact

• The sale of shares by the CEO could be perceived negatively by some shareholders, potentially leading to a slight decrease in investor confidence.
• However, the existence of a 10b5-1 trading plan mitigates this concern, as it indicates the sale was pre-planned and not based on current insider information.

Key Dates

Keywords

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