4/A: Paylocity Executive Rachit Lohani Reports Amended Securities Transactions

Rachit Lohani, Chief Technology Officer of Paylocity Holding Corp, files an amendment to a previous Form 4, correcting the number of shares acquired and the total amount of securities beneficially owned following a transaction involving Market Stock Units.

Summary

• Rachit Lohani, the Chief Technology Officer of Paylocity Holding Corp, filed an amended Form 4 with the SEC.
• The amendment corrects an error in the number of shares acquired and the total securities beneficially owned, as reported in the original filing on September 12, 2024.
• The transaction involves Market Stock Units that converted to restricted stock units (RSUs) based on Paylocity's total shareholder return performance over a three-year period ending August 31, 2024.
• On September 10, 2024, 1,404 shares of common stock were acquired, and 3,509 Market Stock Units were converted.
• The RSUs will vest on October 1, 2024, contingent upon Lohani's continued employment.

Sentiment

Score: 7

Explanation: The document is a routine regulatory filing correcting a previous error. It doesn't contain any information that would significantly impact investor sentiment positively or negatively. The use of performance based compensation is generally viewed as positive.

Future Outlook

The RSUs will vest on October 1, 2024, subject to the Reporting Person's continued employment.

Industry Context

This filing is a routine disclosure related to executive compensation and stock ownership, common in publicly traded companies. It reflects the performance-based compensation structure often used to align executive incentives with shareholder value.

Comparison to Industry Standards

• Paylocity's use of Market Stock Units that convert to restricted stock units based on total shareholder return is a fairly standard practice among publicly traded companies, particularly in the tech sector.
• Companies like Workday, ADP, and Ceridian also utilize similar performance-based equity compensation plans to incentivize executives.
• The vesting schedules and performance metrics associated with these plans vary, but the underlying principle of linking executive compensation to company performance remains consistent.
• The specific details of Paylocity's plan, such as the three-year performance period and the payout range of 0% to 200%, would need to be compared to those of its peers to determine its relative competitiveness.

Stakeholder Impact

• The correction of the filing ensures transparency for shareholders regarding executive compensation and ownership.
• The vesting of RSUs incentivizes the executive to continue driving company performance, potentially benefiting shareholders.

Next Steps

• The RSUs are scheduled to vest on October 1, 2024, contingent upon Rachit Lohani's continued employment with Paylocity.

Key Dates