Form 4: Paylocity Executive Chairman Steven Beauchamp Sells Shares Under 10b5-1 Plan, Transfers Shares to Trusts

Steven Beauchamp, Executive Chairman of Paylocity Holding Corp, sold shares under a pre-arranged 10b5-1 plan and transferred shares to family and grantor trusts.

Summary

• Steven Beauchamp, the Executive Chairman of Paylocity Holding Corp, filed a Form 4 detailing changes in his beneficial ownership of the company's stock.
• On May 15, 2025, he sold 28,329 shares at a weighted average price of $199.16 per share, and 1,671 shares on May 16, 2025, at a weighted average price of $199.29 per share, both transactions were executed under a 10b5-1 plan adopted on November 15, 2024.
• He also transferred 235,000 shares as a gift to the IRIE Family Trust, for which his spouse serves as trustee.
• Additionally, he transferred 100,000 shares to the Steven Beauchamp 2025 Grantor Retained Annuity Trust (GRAT) and 69,138 shares to Gotham Triple Advantage Strategy LP, where he owns a 99% limited partner interest and retains investment control.
• Following these transactions, Beauchamp directly owns 1,522,781 shares of Paylocity common stock.

Sentiment

Score: 6

Explanation: The sentiment is neutral. The transactions are part of a pre-planned 10b5-1 plan and include transfers to trusts, which doesn't necessarily indicate a negative outlook, but the share sales could be perceived as slightly negative.

Positives

• The sales were conducted under a pre-arranged 10b5-1 plan, which can reassure investors that the transactions were not based on insider information.

Negatives

• The sale of shares by a high-ranking executive could be interpreted negatively by some investors, although the 10b5-1 plan mitigates this concern.

Risks

• While the 10b5-1 plan provides some reassurance, continued sales by Beauchamp could still put downward pressure on the stock price.

Industry Context

Executive stock transactions are common and closely watched in the tech industry, particularly in SaaS companies like Paylocity. Investors often analyze these transactions for insights into management's confidence in the company's future prospects.

Comparison to Industry Standards

• Comparing Beauchamp's transactions to those of executives at similar companies like Workday (WDAY) or Automatic Data Processing (ADP) could provide context.
• For example, if other executives in the sector are also selling shares under 10b5-1 plans, it might indicate a broader trend related to personal financial planning rather than company-specific concerns.
• Analyzing the size and frequency of these transactions relative to their overall holdings is also important; a small percentage sale is generally viewed differently than a large-scale divestment.

Related Party Transactions

• The transfer of 235,000 shares to the IRIE Family Trust, where Beauchamp's spouse serves as trustee, is a related party transaction.
• The transfer of 100,000 shares to the Steven Beauchamp 2025 Grantor Retained Annuity Trust (GRAT) is a related party transaction.
• The transfer of 69,138 shares to Gotham Triple Advantage Strategy LP, where Beauchamp owns a 99% limited partner interest, is a related party transaction.

Stakeholder Impact

• The share sales could have a minor negative impact on shareholder value if they create downward pressure on the stock price.
• The transfers to trusts are unlikely to have a direct impact on employees, customers, suppliers, or creditors.

Key Dates

Keywords

Paylocity, Beauchamp, Form 4, 10b5-1 plan, share sale, stock, beneficial ownership, trust, PCTY