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

Paycom's CEO, Chad Richison, executed multiple sales of company stock on October 22nd and 23rd, 2024, under a pre-arranged 10b5-1 trading plan.

Summary

• Chad Richison, CEO, President, and Chairman of Paycom Software, Inc., sold shares of Paycom common stock on October 22 and 23, 2024.
• The sales were executed under a Rule 10b5-1 trading plan adopted on February 16, 2024.
• On October 22, 2024, Richison sold 1,093 shares at a weighted average price of $166.10 and 857 shares at a weighted average price of $166.68.
• On October 23, 2024, Richison sold 697 shares at a weighted average price of $163.48, 853 shares at a weighted average price of $164.46, and 400 shares at a weighted average price of $165.33.
• Following these transactions, Richison directly owns 2,760,660 shares and indirectly owns 3,456,499 shares through Ernest Group, Inc.
• He also has indirect ownership through various irrevocable trusts for his children and grandchildren, as well as a trust for his spouse.
• The reporting person may be deemed to beneficially own the shares of common stock owned by Ernest Group.

Sentiment

Score: 5

Explanation: The document is a standard SEC Form 4 filing, indicating insider trading activity under a pre-arranged plan. It doesn't inherently convey positive or negative sentiment, but rather provides factual information about stock transactions. The sentiment is neutral.

Industry Context

Insider sales are a common occurrence, especially when executed under pre-arranged trading plans like Rule 10b5-1. These plans allow insiders to sell shares at predetermined times and prices, avoiding accusations of trading on non-public information. The market typically views these sales based on the overall trend and the size of the transaction relative to the insider's holdings.

Comparison to Industry Standards

• Comparing Chad Richison's sales to other tech CEOs, the volume is relatively small compared to figures like Mark Zuckerberg or Elon Musk, who often sell larger blocks of shares.
• The use of a 10b5-1 plan is standard practice among executives to avoid insider trading accusations, similar to plans used by Satya Nadella at Microsoft or Tim Cook at Apple.
• The weighted average prices of the sales are within the typical trading range for Paycom, indicating no unusual price movements related to these transactions.

Stakeholder Impact

• The stock sales could have a minor impact on shareholder sentiment, depending on how the market interprets the CEO's actions.
• The sales are unlikely to directly affect employees, customers, suppliers, or creditors.

Key Dates