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 4, 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 4, 2024.
• The sales were executed under a Rule 10b5-1 trading plan adopted on February 16, 2024.
• The transactions involved multiple sales at weighted average prices ranging from $166.64 to $168.22.
• Richison sold shares directly and indirectly through Ernest Group, Inc., of which he is the sole director and which is wholly owned by him and certain trusts for his children.
• He also reported beneficial ownership of shares held by various irrevocable trusts for the benefit of his grandchildren and children, for which he serves as settlor and trustee, as well as a trust for the benefit of his spouse.
• Following the reported transactions, Richison directly owns 2,787,510 shares and indirectly owns 3,481,849 shares through Ernest Group, Inc.

Sentiment

Score: 5

Explanation: The document is a standard SEC filing reporting stock sales by an executive. It doesn't inherently convey positive or negative sentiment, as it's a factual disclosure. The use of a 10b5-1 plan suggests pre-planned sales, which is neutral.

Industry Context

Executive stock sales are a common occurrence, and the use of 10b5-1 trading plans allows insiders to sell shares over time while avoiding accusations of trading on non-public information. The market typically assesses these sales in the context of the company's performance and future prospects.

Stakeholder Impact

• The stock sales could have a minor impact on shareholders, potentially creating downward pressure on the stock price in the short term.
• The sales do not appear to have any direct impact on employees, customers, suppliers, or creditors.

Key Dates