Company: PAYC
Filing Date: 2025-04-03
Form Type: DEF 14A
Source: 0001193125-25-072358
Chunk: 41

Company: Paycom Software, Inc.
Filing Date: 2025-04-03
Form: DEF 14A
Chunk 41
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 in the 2023 equity program – and determined that revenue was the financial performance measure most critical to our ability to deliver sustained stockholder value creation, as well as a key metric used by our investors to measure our performance relative to market benchmarks. The Committee determined it was appropriate to use the same financial performance metric for certain NEOs in the cash and equity incentive programs to emphasize the criticality of maintaining a strong revenue growth rate in 2024. Due to significant challenges in setting reliable long-term financial goals in the highly volatile macroeconomic environment, the Committee approved a one-yearperformance period for the 2024 PSUs to maintain the rigor and effectiveness of our program. The chosen performance period eliminated the possibility of overperformance in one year offsetting underperformance in another year during a longer-term performance cycle. The Committee will continue to review market conditions and evaluate whether longer performance periods for future equity awards would be appropriate. Except with respect to Ms. Walker, the payout opportunity for the 2024 PSUs was capped at target, with no additional payouts provided for above-target performance. The Committee determined that this incentive payout schedule reflected the rigor of the target goal and avoided a possibility of providing outsized payouts.

| Metric  |             | Performance Level |      | Payout     
 Percentage |
| Revenue |             | < $1,870 MM       |      | 0%         |
|         | ≥ $1,870 MM |                   | 100% |            |

2024 RSU Awards RSUs granted to the participating NEOs in 2024 as part of their annual long-term incentive compensation were designed to align the interests of our executives with those of our stockholders, and to promote the long-term retention of our executive talent. RSUs vest ratably over a three-year period and require continued employment through each vesting date. Randy Peck Equity Awards On May 30, 2024, the Board of Directors appointed Randy Peck as Chief Operating Officer. In connection with this appointment, the Committee approved the following equity awards to Mr. Peck: (i) an annual RSU award (as described above); (ii) an annual PSU award (as described above); and (iii) RSAs with a vesting schedule modeled after that of the RSAs included in the annual equity incentive awards granted to certain other executive officers in 2023. Mr. Peck’s RSAs consisted of 37,500 RSAs, with an aggregate grant date fair value of $5,960,625. The RSAs vested