Form 4: Paycom CEO Chad Richison Sells Shares Under 10b5-1 Trading Plan
SEC Form 4 Filing
Paycom's CEO, Chad Richison, executed sales of company stock on August 22, 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 August 22, 2024.
- The sales were executed under a Rule 10b5-1 trading plan adopted on February 16, 2024.
- A total of 1,455 shares were sold at a weighted average price of $159.85, with prices ranging from $159.10 to $160.08.
- An additional 495 shares were sold at a weighted average price of $160.34, with prices ranging from $160.09 to $160.99.
- Following the transactions, Richison directly owns 2,963,258 shares.
- Richison also indirectly owns shares through various trusts, including Ernest Group, Inc., and several irrevocable trusts for the benefit of his children and grandchildren.
- The total indirect holdings include shares held by Ernest Group, Faye Penelope Richison 2023 Irrevocable Trust, Rome West Pedersen 2023 Irrevocable Trust, Lane West Richison 2022 Irrevocable Trust, Kase Gabriel Richison 2022 Irrevocable Trust, Sage Elizabeth Richison 2022 Irrevocable Trust, Charles Banks Pedersen 2022 Irrevocable Trust, Ava L. Richison 2012 Irrevocable Trust, Ian D. Richison 2012 Irrevocable Trust, Abrie R. Richison 2012 Irrevocable Trust and Charis Michelle Richison Trust.
Sentiment
Score: 5
Explanation: The sentiment is neutral as the filing simply reports stock sales under a pre-existing trading plan. There's no indication of positive or negative implications for the company's performance.
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 over a period of time without being accused of trading on non-public information. The market typically views these sales in the context of the overall trading plan and the insider's remaining holdings.
Stakeholder Impact
- The stock sale may have a minor impact on shareholders, depending on the market's interpretation of the transaction.
- The impact on employees, customers, suppliers, and creditors is likely to be negligible.
Key Dates
| Date | Description |
|---|---|
| 02/16/2024 | Date of adoption of the Rule 10b5-1 trading plan by Chad Richison and Ernest Group, Inc. |
| 08/22/2024 | Date of the reported stock sales. |
| 08/23/2024 | Date of the signature on the Form 4 filing. |
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