Company: PAYC
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0000950170-25-024136
Chunk: 128

Company: Paycom Software, Inc.
Filing Date: 2025-02-20
Form: 10-K
Item: Item 1B
Chunk 128
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. At the beginning of each offering period, eligible employees may elect to contribute, through payroll deductions, up to 10% of their compensation, subject to an annual per employee maximum of $25,000. Eligible employees purchase shares of the Company’s common stock at a price equal to 85% of the fair market value of the shares on the exercise date. The maximum number of shares that may be purchased by a participant during each offering period is 2,000 shares, subject to limits specified by the Internal Revenue Service. The shares reserved for purposes of the ESPP are shares we purchase in the open market. The maximum aggregate number of shares of the Company’s common stock that may be purchased by all participants under the ESPP is 2.0 million shares. During the years ended December 31, 2024, 2023, and 2022, eligible employees purchased 87,073, 72,942 and 54,059 shares, respectively, of the Company’s common stock under the ESPP. Compensation expense related to the ESPP is recognized on a straight-line basis over the requisite service period. Our compensation expense related to the ESPP was $3.5 million, $3.5 million and $2.8 million for the years ended December 31, 2024, 2023, and 2022, respectively.

11.EARNINGS PER SHAREBasic earnings per share is computed by dividing net income by the weighted average number of shares of common stock outstanding for the period. Diluted earnings per share is computed in a similar manner to basic earnings per share after assuming the issuance of shares of common stock for all potentially dilutive equity incentive awards using the treasury stock method.The following is a reconciliation of net income and the shares of common stock used in the computation of basic and diluted earnings per share:

        Year Ended December 31,

        2024

        2023

        2022

        Numerator:

        Net income
         
        $
        502.0

        $
        340.8

        $
        281.4

        Denominator:

        Basic weighted average shares outstanding (in thousands)

        56,208

        57,707

        57,928

        Dilutive effect of unvested restricted stock and restricted stock units (in thousands)

        88

        267

        247

        Diluted weighted average shares outstanding (in thousands)

        56,296

        57,