Form 4: Paycom CEO Richison Reports Share Vesting & Tax Withholding

Paycom Software, Inc. CEO Chad R. Richison reported the vesting of performance-based restricted stock units and subsequent tax withholding, adjusting his beneficial ownership.

Summary

• Chad R. Richison, CEO, President, and Chairman of Paycom Software, Inc., reported transactions on February 10, 2026.
• Acquired 43,148 shares of common stock upon the vesting of performance-based restricted stock units granted on February 21, 2025, under the Paycom Software, Inc. 2023 Long-Term Incentive Plan.
• Disposed of 18,921 shares of common stock at a price of $124.94 per share to satisfy tax withholding obligations related to the vesting; no shares were sold in the open market.
• Following these transactions, direct beneficial ownership stands at 2,690,594 shares, which includes 28,766 unvested restricted stock units.
• Indirect beneficial ownership includes shares held by various irrevocable trusts for grandchildren and children, a revocable trust for the spouse, and Ernest Group, Inc., totaling 3,238,020 shares.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a moderately positive event, as it signifies the successful vesting of performance-based equity awards, aligning executive incentives with company performance, despite the routine tax-related share disposal.

Positives

• Chad R. Richison acquired 43,148 shares of Paycom common stock through the vesting of performance-based restricted stock units, indicating achievement of performance targets.
• The acquisition of shares at a $0 price reflects compensation through equity awards, aligning management's interests with shareholders.

Negatives

• 18,921 shares were disposed of to cover tax withholding obligations, reducing the direct share count.

Future Outlook

NA

Industry Context

StockSavvy.ai notes that insider transactions, particularly those involving equity compensation vesting and tax withholding, are routine disclosures for executives of publicly traded companies like Paycom. These transactions reflect the standard operation of long-term incentive plans designed to align executive interests with shareholder value, rather than indicating a change in strategic direction or market sentiment.

Related Party Transactions

• Shares are held indirectly by various irrevocable trusts for the reporting person's grandchildren and children, for which the reporting person serves as settlor and sole trustee.
• Shares are held indirectly by a revocable trust for the reporting person's spouse, for which the reporting person may be deemed to beneficially own the shares.
• Shares are held indirectly by Ernest Group, Inc., which is wholly owned by the reporting person and certain trusts for the reporting person's children, with the reporting person as sole director.

Stakeholder Impact

• Shareholders: The vesting of performance-based restricted stock units indicates that performance targets were met, which could be viewed positively as it aligns executive compensation with shareholder interests. The tax withholding is a routine administrative event.

Key Dates

Recommendation

This Form 4 filing details routine insider transactions related to equity compensation vesting and tax withholding for Paycom's CEO. It does not present new information regarding the company's operational performance, strategic direction, or financial health that would warrant a change in investment recommendation. The transactions are expected and administrative in nature, thus a 'hold' recommendation is maintained, pending further fundamental analysis.

Keywords

Paycom Software, PAYC, Chad R. Richison, Form 4, Insider Transaction, Restricted Stock Units, Equity Compensation, Beneficial Ownership, CEO, Director, 10% Owner