Company: PAYC
Filing Date: 2025-08-18
Form Type: 8-K
Source: 0000950170-25-109719
Chunk: 2

Company: Paycom Software, Inc.
Filing Date: 2025-08-18
Form: 8-K
Item: Item 5.02
Chunk 2
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annon entered into a letter agreement (the “Gannon Letter Agreement”) setting forth certain terms of Ms. Gannon’s continued employment and her compensation. Ms. Gannon’s annual base salary is $525,000. Consistent with the terms of a bonus program established prior to Ms. Gannon’s promotion, she is eligible to receive a 2025 cash bonus of $200,000 payable in quarterly installments, with two payments remaining for 2025. Beginning in 2026, Ms. Gannon will be eligible for an annual bonus pursuant to the AIP. Consistent with the bonus program for other executive officers, performance criteria and potential payouts for AIP bonuses will be determined by the Compensation Committee of the Board. Ms. Gannon is also eligible to receive equity awards under the 2023 LTIP in accordance with the Company’s typical annual grant cycle for executive officers. The foregoing description of the terms of the Gannon Letter Agreement is not complete and is qualified in its entirety by reference to the full text of the Gannon Letter Agreement, a copy of which is filed with this Current Report on Form 8-K as Exhibit 10.2 and is incorporated herein by reference.

Smith

Following his resignation on October 31, 2025, Mr. Smith will transition to the role of Senior Technical Strategist for Paycom Payroll, LLC (“Paycom Payroll”), a wholly owned subsidiary of the Company. In connection with this transition, Mr. Smith entered into a Transition Compensation and Release Agreement (the “ Smith Transition Agreement”) with the Company and a letter agreement setting forth certain terms of his new role (the “ Smith Letter Agreement”), each dated August 18, 2025.

Pursuant to the Smith Transition Agreement, subject to and contingent upon Mr. Smith’s timely execution, return, and non-revocation of a release of claims against the Company (the “Release”) on the Transition Date, the Company will accelerate the vesting of 7,000 shares of time-based restricted stock and 5,393 time-based restricted stock units previously granted to Mr. Smith under the 2023 LTIP, in each case effective on the eighth day following Mr. Smith’s execution of the Release. The Smith Transition Agreement also provides that Mr. Smith’s remaining unvested time-based equity incentive awards, consisting of 19,000 unvested shares of restricted stock and 7,901 unvested restricted stock units, will be cancelled. Mr. Smith’s unvested performance-based restricted