Company: PAYC
Filing Date: 2025-04-03
Form Type: DEF 14A
Source: 0001193125-25-072358
Chunk: 30

Company: Paycom Software, Inc.
Filing Date: 2025-04-03
Form: DEF 14A
Chunk 30
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 the rigor of the equity incentive program, ensuring robust performance levels on an annual basis without strong performance in one year offsetting underperformance in another during a multi-year performance period.   ›   The Committee will continue to review market conditions and evaluate whether longer performance periods for future equity awards would be appropriate.                                                                                                                                                                                                                                                                                                                                |
| Preference for diversified metrics across cash and equity incentive plans                     |     | ›   Annually, the Committee considers the use of different metrics in our executive compensation plans. The Committee chose to use revenue as a key performance metric in both our cash and equity incentive plans because revenue growth is a critical measure of our operational success. Revenue growth is also a key metric used by our investors to assess our annual and longer-term performance. This focus reflects our strategic priority to maintain a strong revenue growth rate, which underpins our broader growth strategy and supports the creation of sustainable value for stockholders.   ›   The Committee will continue to assess appropriateness of incorporating additional metrics in the annual and long-term incentive plans in alignment with the strategic priorities of our growth strategy.                                                                                                        |

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Compensation Philosophy As we pursue our strategic objectives, we must continuously develop and refine our solution to stay ahead of our clients’ needs and challenges, which requires a talented and experienced management team. The Committee, with input from its independent compensation consultant, has developed an executive compensation program that we believe does not encourage excessive or inappropriate risk-taking and is designed to (i) motivate, reward and retain our leaders, (ii) support our strategic objectives, including long-term, sustainable growth and increasing stockholder value, and (iii) encourage strong financial performance on an annual and long-term basis. The Committee has determined what it believes to be the appropriate level and mix of the various compensation components for our executive officers. The specific objectives of our executive compensation program are to:

| › | reward the achievement of our strategic objectives, including financial growth; |

| › | drive the continued development of our successful and profitable business; |

| › | motivate, reward and retain highly qualified executives who are important to our success; |

| › | recognize strong performers by offering cash performance-based incentive compensation and equity awards that reward contributions to our overall success; and |

| › | align the interests of our executive officers with those of our stockholders and, in doing so, create value for our stockholders. |

The table below summarizes how the various components of our executive compensation program are designed to achieve these