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

Paycom's CEO, Chad Richison, executed multiple sales of Paycom stock on October 30, 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 30, 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 $166.99 to $174.68 per share.
• The sales were conducted directly by Richison and indirectly through Ernest Group, Inc., where he is the sole director and owns the company through trusts.
• Richison also holds shares indirectly through various irrevocable trusts for the benefit of his children and grandchildren, as well as a trust for his spouse.
• Following the reported transactions, Richison directly owns 2,750,910 shares of Paycom common stock.
• Additionally, Ernest Group, Inc. owns 3,446,749 shares.

Sentiment

Score: 5

Explanation: The sentiment is neutral as the document simply reports stock sales under a pre-existing trading plan. It doesn't inherently indicate positive or negative sentiment about the company's prospects.

Industry Context

Insider 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 analyzes the size and frequency of such sales to gauge insider sentiment.

Stakeholder Impact

• Shareholders may react to the news of insider sales, although the existence of a 10b5-1 plan mitigates concerns about opportunistic trading.
• The sales could have a minor impact on the stock price in the short term.

Key Dates