Form 4: Paycom CFO's Tax Withholding on RSU Vesting

Paycom Software's CFO, Robert D. Foster, reported a routine tax withholding of 969 shares of common stock related to the vesting of restricted stock units.

Summary

• Robert D. Foster, Chief Financial Officer of Paycom Software, Inc. (PAYC), reported a transaction on February 5, 2026.
• The transaction involved the disposition of 969 shares of common stock at a price of $131.59 per share.
• These shares were withheld by the company to cover tax withholding obligations associated with the vesting of 3,196 restricted stock units (RSUs).
• The RSUs were originally granted to Mr. Foster on February 21, 2025.
• No shares were sold by Mr. Foster in this transaction; it was a mandatory tax withholding.
• Following this transaction, Mr. Foster directly beneficially owns 13,778 shares of common stock, which includes 6,393 unvested restricted stock units and 3,750 unvested shares of restricted stock.
• An additional 26 shares are indirectly beneficially owned by his spouse.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this as a neutral event. It is a routine administrative transaction related to executive compensation and tax obligations, not a discretionary sale or purchase that would signal a change in management's outlook.

Positives

• The vesting of restricted stock units indicates continued compensation and retention of a key executive.
• The transaction is a routine tax withholding, not a discretionary sale, suggesting no immediate negative sentiment from the CFO regarding the company's prospects.

Future Outlook

NA

Industry Context

StockSavvy.ai notes that routine tax withholdings upon RSU vesting are a common occurrence for executives in publicly traded companies, particularly in the technology and software sectors like Paycom, where equity compensation is a significant component of executive pay. This transaction aligns with standard compensation practices and does not indicate any unusual activity.

Comparison to Industry Standards

• This transaction is a standard practice for executive compensation in the U.S. market.
• Companies like Salesforce (CRM), Workday (WDAY), and Oracle (ORCL) frequently report similar Form 4 filings for their executives related to RSU vesting and associated tax withholdings.
• The withholding of shares to cover tax liabilities is a common mechanism to manage the tax implications of equity compensation, ensuring compliance without requiring the executive to make an out-of-pocket payment for taxes on vested equity.

Stakeholder Impact

• Shareholders: Minimal direct impact as it's a routine tax withholding, not a discretionary sale. It reflects ongoing executive compensation.
• Employees: No direct impact.
• Customers: No direct impact.
• Suppliers: No direct impact.
• Creditors: No direct impact.

Key Dates

Keywords

Paycom Software, PAYC, Robert D. Foster, CFO, Form 4, SEC filing, insider transaction, restricted stock units, RSU vesting, tax withholding, beneficial ownership