Paycom Software, Inc. Form 8-K Summary
Business Context and Reporting Period
This Form 8-K was filed by Paycom Software, Inc. on January 26, 2018. The report details the approval of restricted stock awards to executive officers by the Compensation Committee of the Board of Directors under the 2014 Long-Term Incentive Plan.
Key Financial Metrics
The filing does not provide current revenue, profit, cash flow, margins, debt, or liquidity figures. The only financial metric disclosed is the total enterprise value (TEV) targets used for market-based vesting conditions: $5.9 billion and $6.2 billion.
Material Changes
The material event reported is the grant of equity compensation to four executive officers. No changes to financial performance or corporate structure are reported in this document.
Management Commentary and Vesting Terms
The awards consist of Time-Based Shares and Market-Based Shares. Time-Based Shares vest in three equal tranches on May 6, 2019, May 6, 2020, and May 6, 2021, contingent on continued employment. Market-Based Shares vest 50% upon reaching a TEV of $5.9 billion and 50% upon reaching a TEV of $6.2 billion, provided these milestones are met within six years of the grant date and the executive remains employed.
Total enterprise value is calculated as the product of the average stock price over 20 consecutive trading days and shares outstanding, plus outstanding funded indebtedness, less cash and cash equivalents.
Executive Award Details
| Executive Officer | Total Time-Based Shares | Total Market-Based Shares | Aggregate Total Shares |
|---|---|---|---|
| Chad Richison | 63,000 | 98,000 | 161,000 |
| Craig E. Boelte | 18,000 | 28,000 | 46,000 |
| Stacey Pezold | 3,375 | 5,250 | 8,625 |
| Jeffrey York | 18,000 | 28,000 | 46,000 |
Investor Verification Checklist
- Verify the current total enterprise value of Paycom Software against the $5.9 billion and $6.2 billion vesting thresholds.
- Confirm the continued employment status of the named executives to ensure vesting conditions are met.
- Review the company's most recent 10-K or 10-Q for actual revenue, profit, and debt figures, as this 8-K does not contain them.
- Monitor the 20-day average stock price calculation methodology for future vesting determinations.