Form 4: Paycom CEO Richison Reports Routine Stock Transaction

Paycom Software, Inc. CEO Chad R. Richison reported a routine transaction involving shares withheld for tax obligations related to restricted stock unit vesting.

Summary

• Chad R. Richison, CEO, President, Chairman, and 10% Owner of Paycom Software, Inc. (PAYC), reported a transaction on February 5, 2026.
• The transaction involved the withholding of 5,199 shares of common stock by Paycom Software, Inc. to cover tax obligations.
• This withholding was in connection with the vesting of 14,382 restricted stock units (RSUs) granted to Mr. Richison on February 21, 2025.
• No shares were sold by Mr. Richison in this transaction; the shares were withheld by the issuer.
• The price per share for the withheld shares was $131.59.
• Following this transaction, Mr. Richison directly beneficially owns 2,666,367 shares, which includes 28,766 unvested restricted stock units.
• He also indirectly beneficially owns 3,237,879 shares through various family trusts and Ernest Group, Inc., where he serves as settlor/trustee or sole director.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a neutral to slightly positive event, as it reflects the vesting of long-term incentives and a lack of open market sales by a key insider, indicating continued confidence.

Positives

• The transaction represents the vesting of restricted stock units, indicating continued long-term incentive alignment between management and shareholders.
• No shares were sold by the reporting person; the transaction was solely for tax withholding purposes, suggesting a continued holding strategy.

Negatives

• The direct beneficial ownership of common stock decreased by 5,199 shares due to tax withholding.

Future Outlook

The filing does not contain any forward-looking statements or guidance regarding the company's future performance or strategic direction.

Industry Context

StockSavvy.ai notes that the withholding of shares for tax obligations upon RSU vesting is a standard practice in executive compensation across various industries. This mechanism allows executives to cover tax liabilities without needing to sell additional shares on the open market, which is common for publicly traded companies like Paycom Software, Inc.

Comparison to Industry Standards

• StockSavvy.ai observes that this type of transaction is a routine and widely accepted practice for executive compensation and tax management, aligning with practices seen at peer companies in the software and human capital management sectors such as Workday (WDAY) or Automatic Data Processing (ADP). The specific number of shares and value are particular to Paycom's compensation structure and stock performance, but the mechanism itself is standard.

Related Party Transactions

• Chad R. Richison indirectly beneficially owns shares through various irrevocable trusts established for the benefit of his children and grandchildren, for which he serves as settlor and sole trustee.
• Chad R. Richison indirectly beneficially owns shares through the Charis Michelle Richison Trust, a revocable trust for the benefit of his spouse.
• Chad R. Richison indirectly beneficially owns shares through Ernest Group, Inc., where he is the sole director and which is wholly owned by him and certain trusts for his children.

Stakeholder Impact

• Shareholders: The transaction is a routine tax-related event and does not indicate a change in the company's operational or financial performance. The insider's continued significant ownership, including unvested RSUs, aligns his interests with long-term shareholder value.
• Employees: No direct impact on employees is indicated by this filing.
• Customers, Suppliers, Creditors: No direct impact on these stakeholders is indicated by this filing.

Key Dates

Keywords

Paycom Software, PAYC, Chad R. Richison, Insider Transaction, Form 4, Restricted Stock Units, RSU Vesting, Tax Withholding, Beneficial Ownership, CEO, Director, 10% Owner