Company: PAYC
Filing Date: 2025-04-03
Form Type: DEF 14A
Source: 0001193125-25-072358
Chunk: 44

Company: Paycom Software, Inc.
Filing Date: 2025-04-03
Form: DEF 14A
Chunk 44
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 Award On November 23, 2020, Mr. Richison was granted a special performance award (the “2020 CEO Performance Award”) under the 2014 LTIP, which was designed to encourage Mr. Richison to continue to drive stockholder value over the 10-year periodcovered by the award. Over the last several years, stockholder support of our annual say-on-pay proposalshas been low, largely driven by stockholder concerns related to the magnitude of the 2020 CEO Performance Award, despite the significantly increased rigor of the performance milestones and highly uncertain outcomes of the award. As was the case in 2021, 2022 and 2023, Mr. Richison did not receive any equity incentive awards in 2024. In early 2024, in connection with the implementation of the Co-Chief ExecutiveOfficer leadership structure, the change in Mr. Richison’s position from Chief Executive Officer to Co-Chief ExecutiveOfficer triggered the forfeiture of the 2020 CEO Performance Award in accordance with its terms. Other Compensation Components and Considerations Retirement Benefits We believe that establishing competitive benefit packages for our employees is an important factor in attracting and retaining highly qualified personnel. We maintain broad-based benefits that are provided to all full-time employees, including medical, dental, group life insurance, accidental death and dismemberment insurance, long- and short-term disability insurance, and a 401(k) plan. Our NEOs are eligible to participate in all of our employee benefit plans, in each case on the same basis as other employees. The Committee in its discretion may revise, amend or add to an NEO’s benefits and perquisites if it deems it advisable. We maintain a 401(k) plan for our employees. Our 401(k) plan is intended to qualify as a tax-qualifiedplan under Code Section 401 so that contributions to our 401(k) plan, and income earned on such contributions, are not taxable to participants until withdrawn or distributed from the 401(k) plan. Our 401(k) plan provides that each participant may contribute up to 100% of his or her pre-taxcompensation, up to a statutory limit, which was $20,500 for 2022, $22,500 for 2023, and $23,000 for 2024. Participants who are at least 50 years old can also make “catch-up”contributions, which in 2022 was limited to an additional $6,500 above the statutory limit, and in