Form 4: Paycom CEO Chad Richison Sells Shares Worth Millions on October 31, 2024

Paycom's CEO, Chad Richison, executed multiple sales of Paycom stock on October 31, 2024, under a pre-arranged trading plan.

Summary

• Chad Richison, CEO, President, and Chairman of Paycom Software, Inc., sold shares of common stock on October 31, 2024.
• The sales were executed under a joint Rule 10b5-1 trading plan adopted on February 16, 2024.
• The transactions involved multiple sales at varying prices, ranging from $193.01 to $219.71 per share.
• Richison sold shares in multiple transactions at prices ranging from $209.32 to $210.12, inclusive.
• Richison sold shares in multiple transactions at prices ranging from $210.22 to $211.18, inclusive.
• Richison sold shares in multiple transactions at prices ranging from $211.18 to $212.11, inclusive.
• Richison sold shares in multiple transactions at prices ranging from $212.21 to $213.11, inclusive.
• Richison sold shares in multiple transactions at prices ranging from $213.29 to $214.10, inclusive.
• Richison sold shares in multiple transactions at prices ranging from $214.20 to $215.14, inclusive.
• Richison sold shares in multiple transactions at prices ranging from $215.17 to $216.07, inclusive.
• Richison sold shares in multiple transactions at prices ranging from $219.21 to $219.71, inclusive.
• After the reported transactions, Richison directly owns 2,748,960 shares of Paycom common stock.
• Richison also has indirect ownership through various irrevocable trusts for the benefit of his children and grandchildren, as well as a trust for the benefit of his spouse.
• The trusts hold amounts of 253, 56, 1012 and 12,500 shares.

Sentiment

Score: 5

Explanation: The document itself is neutral, simply reporting transactions. The sentiment depends on the investor's interpretation of the CEO's stock sales. Could be seen as negative if investors believe the CEO is losing confidence, or neutral if viewed as routine diversification.

Industry Context

Executive stock sales are a common occurrence, and the use of 10b5-1 plans allows insiders to sell shares over time while avoiding accusations of trading on inside information. Investors often monitor these filings for insights into management's perspective on the company's valuation and future prospects.

Comparison to Industry Standards

• Executive stock sales are a common practice across publicly traded companies, especially in the tech sector.
• Similar to executives at companies like Salesforce (CRM) or Workday (WDAY), Chad Richison uses a pre-arranged trading plan (Rule 10b5-1) to manage his stock sales.
• The scale of the sales is within the typical range for CEOs of similarly sized companies, but the market reaction will depend on the context of Paycom's performance and outlook.

Stakeholder Impact

• The stock sales could potentially impact shareholder sentiment, depending on how the market interprets the transactions.
• The sales do not appear to directly impact employees, customers, suppliers, or creditors.

Key Dates