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

Paycom's CEO, Chad Richison, executed sales of company stock on July 5, 2024, under a pre-arranged Rule 10b5-1 trading plan.

Summary

• Chad Richison, CEO, President, and Chairman of Paycom Software, Inc., sold shares of common stock on July 5, 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 $140.74 to $142.86 per share.
• Richison sold shares directly and indirectly through Ernest Group, Inc., where he is the sole director and the entity is owned by him and trusts for his children.
• He also indirectly owns shares through various irrevocable trusts established for the benefit of his grandchildren and children.
• The reporting person may be deemed to beneficially own the shares of common stock owned by Ernest Group.
• The reporting person may be deemed to beneficially own the shares of common stock owned by the Faye Penelope Richison 2023 Irrevocable Trust (the 'FPR Trust').
• The reporting person may be deemed to beneficially own the shares of common stock owned by the Rome West Pedersen 2023 Irrevocable Trust (the 'RWP Trust').
• The reporting person may be deemed to beneficially own the shares of common stock owned by the Lane West Richison 2022 Irrevocable Trust (the 'LWR Trust').
• The reporting person may be deemed to beneficially own the shares of common stock owned by the Kase Gabriel Richison 2022 Irrevocable Trust (the 'KGR Trust').
• The reporting person may be deemed to beneficially own the shares of common stock owned by the Sage Elizabeth Richison 2022 Irrevocable Trust (the 'SER Trust').
• The reporting person may be deemed to beneficially own the shares of common stock owned by the Charles Banks Pedersen 2022 Irrevocable Trust (the 'CBP Trust').
• The reporting person may be deemed to beneficially own the shares of common stock owned by the Ava L. Richison 2012 Irrevocable Trust (the 'ALR Trust').
• The reporting person may be deemed to beneficially own the shares of common stock owned by the Ian D. Richison 2012 Irrevocable Trust (the 'IDR Trust').
• The reporting person may be deemed to beneficially own the shares of common stock owned by the Abrie R. Richison 2012 Irrevocable Trust (the 'ARR Trust').
• The reporting person may be deemed to beneficially own the shares of common stock owned by the Charis Michelle Richison Trust (the 'Spouse Trust').

Sentiment

Score: 5

Explanation: The document is a standard SEC filing reporting stock sales by an insider. It doesn't inherently convey positive or negative sentiment, as it's a routine disclosure.

Industry Context

Executive stock sales are a common occurrence, and sales under 10b5-1 plans are generally viewed as less impactful since they are pre-scheduled. However, investors often monitor these sales for insights into management's perspective on the company's valuation and future prospects.

Stakeholder Impact

• Shareholders may react to the news of the CEO selling shares, although the pre-planned nature of the sales may mitigate concerns.
• The sales do not directly impact employees, customers, suppliers, or creditors.

Key Dates