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 18, 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 October 18, 2024.
• The sales were executed under a pre-arranged Rule 10b5-1 trading plan adopted on February 16, 2024.
• Multiple transactions occurred at varying prices, ranging from $164.34 to $166.50.
• Richison sold shares directly and indirectly through Ernest Group, Inc., where he is the sole director.
• He also has indirect ownership through several irrevocable trusts for his children and grandchildren, for which he serves as trustee.
• The total number of shares sold directly was 2,950.
• The total number of shares sold indirectly through Ernest Group, Inc. was 2,950.
• The filing also details beneficial ownership through various trusts.

Sentiment

Score: 5

Explanation: This is a neutral event. The stock sales were pre-planned under a 10b5-1 trading plan, so they don't necessarily reflect a change in the CEO's outlook on the company.

Industry Context

Insider sales are a common occurrence, but are closely watched by investors for signals about a company's prospects. Sales under a 10b5-1 plan are generally viewed as less indicative of management's view of the company's future, as the plans are pre-arranged.

Stakeholder Impact

• The stock sale could have a minor negative impact on shareholder sentiment, although the existence of the 10b5-1 plan mitigates this.

Key Dates