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

Paycom's CEO, Chad Richison, executed sales of company stock on October 10, 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 10, 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 $161.46 to $163.76 per share.
• Richison sold shares directly and indirectly through Ernest Group, Inc., where he is the sole director and which is wholly owned by him and certain trusts for his children.
• The filing also details shares held in various irrevocable trusts for the benefit of Richison's children and grandchildren, for which he serves as trustee, and a revocable trust for the benefit of his spouse.
• After the reported transactions, Richison directly owns 2,778,210 shares and indirectly owns 3,474,049 shares through Ernest Group, Inc.

Sentiment

Score: 5

Explanation: The document is a standard SEC filing detailing stock sales by an insider under a pre-arranged plan. It is neutral in tone and content.

Industry Context

Sales by insiders are a common occurrence, but are closely watched by investors for signals about the company's prospects. Sales under a 10b5-1 plan are generally viewed as less concerning since they are pre-arranged.

Stakeholder Impact

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

Key Dates