Corporate records show that chad richison, founder of Paycom based in Oklahoma City, received more than $ 211 million in compensation last year for his role as president and CEO of the company.The New York Times reported last week that the money they earned in 2020 was more than any other CEO, almost four times as much as the other top 10 finishers.
But there is a catch.
The company’s compensation report to the Securities and Exchange Commission shows that Chad Richison annual earnings have increased nearly tenfold since 2019, but on paper. Most of the listed compensation is part of a long-term, fixed-term prize that you will not pay for many years – if not. . A share of the shares is available when Paycom stock reaches $ 1,000 within six years. The balance can only be given if the stock reaches $ 1,750 within ten years.
Paycom stock prices on Monday rose to more than $ 400.
There are limits to how fast Chad Richison can sell stock if those targets are met, but once the shares are issued it could be a major payment date. With a target target of $ 1,750 a share, this fully compensated compensation package could cost more than $ 2.8 billion if Richison retains all of its shares.
If the stock does not reach its target, Richison gets nothing. If he leaves or is fired and the shares do not receive within a year, he gets nothing. He will not receive another such compensation package for at least several years, said Jason Clark, chairman of the compensation committee. Richison is already a billionaire with more than 8.5 million shares, or about 14.2% of a software company he has made publicly. in 2014 with the first public offering of $ 15 a share.
Here’s why Paycom’s Chad Richison
The company says it is a 10-year operating contract that reflects stock options for a “long-term, performance-based prize.” The Richison Compensation Prize requires the company to become more valuable, “Clark said. “This award is entirely dependent on chad richison on achieving ambitious operational goals – which will generate a significant amount of value for our shareholders – in particular, an estimated 160% increase in Paycom’s revenue above the company’s current share price.” The stock price of $ 1,750 will lower the company’s market cap of about $ 100 billion, making it one of the largest publicly traded companies based on current data.
While Richison’s fortunes have increased in recent years with Paycom’s continued growth, Richison made a significant commitment to helping people last year when he signed the Giving Pledge.