Company: PAYC
Filing Date: 2025-04-03
Form Type: DEF 14A
Source: 0001193125-25-072358
Chunk: 33

Company: Paycom Software, Inc.
Filing Date: 2025-04-03
Form: DEF 14A
Chunk 33
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 Plan requires that the Committee set performance goals within the first 90 days of a performance period. Following the end of a performance period and our receipt of the independent auditor’s report with respect to financial statements for the applicable fiscal year, the Committee must certify the extent to which the performance goals were achieved as well as the calculation and determination of the incentive compensation to be paid to each participant under the Annual Incentive Plan. With respect to equity compensation, the Committee determines whether and when to grant awards to executive officers based on its evaluation of the various factors discussed under “—Equity Incentive Compensation—Overview” below. Peer Group Data The Committee uses peer group data as a point of reference for designing our compensation programs and setting compensation levels. In October 2023, the Committee reviewed comparative executive compensation data from a group of companies identified based on the selection criteria described below. The Committee does not use peer group data as a determinative factor, but rather an external check to verify our executive compensation programs are reasonable and competitive. In developing the primary peer group, the Committee sought to include U.S.-headquartered companies that, in the Committee’s view, are similar to the Company in terms of size, industry focus and level of operational and organizational complexity. In particular, the Committee targeted application software companies with comparable SaaS business models and business software applications. The peer group companies were also identified based on revenue and market capitalization. Potential peer group companies were evaluated based on the trailing 12 months of data that preceded the annual peer group review. With the assistance of its independent compensation consultant, the Committee ultimately identified the primary peer group set forth below. The primary peer group includes 19 software companies with median revenues of $1.8 billion and median market capitalization of $15.0 billion. For the 2024 peer group, Coupa Software and Zendesk were removed from the group due to their respective acquisitions, and PTC and Dynatrace were added as software companies of similar size and complexity to our operations to maintain a balanced peer group composition.

| 2024 Peer Group        |     |                               |
| ANSYS, Inc.            |     | Guidewire Software, Inc.      |
| Aspen Technology, Inc. |     | HubSpot, Inc.                 |
| Blackbaud, Inc.        |     | Okta, Inc.                    |
| CoStar Group, Inc.     |     | Paylocity Holding Corporation |
| Datadog, Inc.          |     | PTC Inc. (New