Form 4: Paycom CEO Chad Richison Transfers 100,000 Shares to Trusts

Paycom CEO Chad Richison transferred 100,000 shares of common stock to various trusts, according to a recent SEC filing.

Summary

• Chad Richison, CEO, President, and Chairman of Paycom Software, Inc., reported a transaction on November 26, 2024, involving the transfer of 100,000 shares of Paycom common stock.
• These shares were disposed of at a price of $0, indicating a transfer rather than a sale.
• Following the transaction, Richison directly owns 2,631,410 shares.
• Additionally, Richison is deemed to indirectly own shares through various trusts, including those for his grandchildren, children, spouse, and a company called Ernest Group, Inc.
• The total indirect ownership includes 1,012 shares each through six different irrevocable trusts for grandchildren, 253 shares each through two irrevocable trusts for children, 56 shares through another irrevocable trust for a child, 12,500 shares through a trust for his spouse, and 3,427,249 shares through Ernest Group, Inc.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction for estate planning purposes, which is neither positive nor negative for the company's performance. The sentiment is neutral to slightly positive as it indicates active management of personal assets by the CEO.

Industry Context

This type of transaction is common for executives who use trusts for estate planning and wealth management.

Comparison to Industry Standards

• Executive stock transfers to trusts are a standard practice for estate planning and wealth management across various industries.
• Similar transactions are frequently seen in filings from other publicly traded companies, such as those in the technology and software sectors, where executives often hold significant equity.

Stakeholder Impact

• The transaction is unlikely to have a significant impact on shareholders, employees, customers, suppliers, or creditors as it is a transfer of shares to trusts controlled by the CEO.

Key Dates

Keywords

Paycom, Chad Richison, SEC Form 4, Stock Transfer, Beneficial Ownership, Trusts, Executive Transactions