Who Owns Paycom Company?

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Who Owns Paycom?

The ownership structure of a company is a key factor in understanding its direction and accountability. For Paycom, its Initial Public Offering (IPO) on April 15, 2014, significantly altered this landscape, opening its ownership to a wide range of public shareholders. This transition marked a major shift from its earlier privately held status.

Founded in 1998 by Chad Richison, Paycom began in Oklahoma City with the goal of modernizing payroll processing through its pioneering online platform. The company has since broadened its services to encompass a complete human capital management (HCM) software suite, addressing every stage of the employee lifecycle. This cloud-based solution is designed to simplify HR tasks and enhance employee self-service, primarily catering to small and medium-sized businesses across the United States.

Understanding Paycom ownership involves looking at its journey from a private venture to a publicly traded entity. As of July 15, 2025, Paycom boasts a market capitalization of $12.4 billion, with approximately 56 million shares outstanding. The company reported revenues of $1.883 billion for 2024, a notable increase from $1.694 billion in 2023. This growth underscores its position as a significant player in the HCM market. The question of who owns Paycom is multifaceted, encompassing the founder's significant stake, the influence of institutional investors, and the collective ownership by public shareholders. Examining Paycom stock ownership reveals a dynamic interplay of these groups. The company's evolution, including its comprehensive Paycom BCG Matrix analysis, highlights its strategic market positioning and growth trajectory. Key figures in Paycom executive ownership and the broader Paycom institutional ownership breakdown provide further insight into who controls Paycom company.

Paycom was established in 1998 by Chad Richison, who continues to lead the company as its President, Chief Executive Officer, and Chairman of the Board. Richison, originally from Oklahoma, drew upon his previous experience in the payroll processing sector, including his sales tenure with a global payroll provider, to launch Paycom. The company initially operated as an online payroll service provider, a groundbreaking approach for its time.

During its period as a private entity, Paycom secured an undisclosed amount of capital through a single private equity funding round from Welsh, Carson, Anderson & Stowe (WCAS). An entity associated with this private equity firm, WCAS Paycom Holdings, Inc., held substantial early ownership stakes. Management incentive units and CEO incentive units were issued with strike prices based on a company enterprise value of $400 million. These initial arrangements included vesting schedules, with a portion of the CEO incentive units vesting over five years and the remainder contingent upon a cash return on investment to WCAS Paycom Holdings, Inc. Following the company's initial public offering (IPO), Chad Richison further solidified his commitment and stake by purchasing an additional 52,600 shares of Paycom stock. This early financial backing and the founder's ongoing involvement were instrumental in shaping Paycom's trajectory prior to its public market debut.

Founder's Vision

Chad Richison founded Paycom in 1998, leveraging his prior payroll industry experience to create an online payroll service provider.

Early Funding

The company received private equity funding from Welsh, Carson, Anderson & Stowe (WCAS) during its private phase.

Key Leadership

Chad Richison holds multiple key roles: President, Chief Executive Officer, and Chairman of the Board.

Early Valuation Metrics

Incentive units were issued with strike prices based on a $400 million company enterprise value.

Founder's Post-IPO Investment

Chad Richison demonstrated continued commitment by purchasing additional shares after the IPO.

Pioneering Service

Paycom was an early adopter and pioneer of online payroll services.

The early ownership structure and the strategic investment from WCAS Paycom Holdings, Inc. were foundational elements in Paycom's development. These early agreements, including specific vesting schedules tied to investment returns, highlight the collaborative and performance-driven nature of the company's initial growth phase. This period of private investment and the founder's sustained involvement laid a robust groundwork for Paycom's subsequent expansion and eventual public offering, underscoring the significance of these early stakeholders in the company's history. For a deeper understanding of the company's journey, one can explore the Brief History of Paycom.

Early Ownership Details

Key aspects of Paycom's early ownership involved private equity investment and founder commitment.

• Chad Richison founded Paycom in 1998.
• Welsh, Carson, Anderson & Stowe (WCAS) was a significant early investor.
• WCAS Paycom Holdings, Inc. held substantial early stakes.
• Incentive units had vesting schedules tied to company performance and investment returns.
• Chad Richison increased his personal shareholding post-IPO.

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The ownership landscape of the company underwent a significant transformation on April 15, 2014, with its Initial Public Offering (IPO) on the New York Stock Exchange under the ticker symbol PAYC. This pivotal event saw the issuance of 6,645,000 shares of common stock at $15.00 per share, raising net proceeds of $64.3 million. The offering comprised 4,606,882 shares sold by the company itself and 2,038,118 shares divested by specific selling stockholders, marking the transition from a private entity to a publicly traded one.

Following the IPO, Paycom's shareholder base broadened considerably, with substantial holdings concentrated among institutional investors, mutual funds, and company insiders. This diversification is typical for publicly traded companies, reflecting a wider distribution of ownership. The company's robust financial performance, including 2024 revenue of $1.88 billion and a net income of $502 million, continues to be a key factor in attracting and retaining these major stakeholders.

As of May 14, 2025, Chad Richison, the founder, CEO, President, and Chairman, remains a prominent individual shareholder. He directly owns 2,673,358 shares and indirectly holds an additional 3,266,983 shares, bringing his total to 5,940,341 shares. Forbes reported in 2024 that Richison's stake represents approximately 12% of Paycom's total shares, underscoring his significant influence as a key stakeholder and the company's founder. Institutional ownership is a dominant force in companies like Paycom, with their collective holdings often shaping the company's trajectory. While specific percentages for the largest institutional holders in 2025 were not detailed, SEC filings, such as the 10-K report for the fiscal year ending December 31, 2024, offer comprehensive insights into the company's financial health and corporate governance, including ownership structures. Understanding the Growth Strategy of Paycom can provide further context on why these stakeholders maintain their positions.

Understanding Paycom's Ownership Structure

Paycom's ownership is a blend of founder, executive, institutional, and potentially employee stakes. The company's public trading status means ownership is widely distributed.

• Chad Richison, the founder, holds a significant individual stake.
• Institutional investors represent a large portion of Paycom stock ownership.
• The company's IPO in 2014 marked a major shift in its ownership evolution.
• Financial performance, such as 2024 revenue of $1.88 billion, influences stakeholder interest.

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The current Board of Directors for Paycom is a blend of seasoned leadership, significant shareholders, and independent voices, all contributing to the company's strategic direction and oversight. Chad Richison, the company's founder, holds the key positions of Chief Executive Officer, President, and Chairman of the Board, a role he has maintained since August 2016. This combination of CEO and Chairman underscores his substantial influence over the company's strategic decision-making processes.

The board also features independent directors appointed recently, including Joe Binz, who joined on December 10, 2024, and Archana Vemulapalli, appointed in July 2024. Other independent directors such as Sharen Jester Turney and J.C. Watts, Jr. are integral to the board's functioning, often serving on critical committees like Audit, Compensation, and Governance. The company operates under a standard one-share-one-vote system, typical for publicly traded entities. However, the significant ownership stake held by founder Chad Richison grants him considerable voting power, influencing the overall control of Paycom. The recent appointments, like Joe Binz, who brings extensive financial leadership experience from the technology sector, are intended to bolster the board's expertise and governance practices.

The voting power within Paycom largely rests with its shareholders, with the company adhering to the common practice of one share, one vote. This structure means that individuals or entities holding a larger number of shares possess a proportionally greater say in corporate decisions. While specific percentages of ownership can fluctuate, founder Chad Richison's substantial stake is a key factor in the company's voting power distribution. Understanding the Marketing Strategy of Paycom can also provide insights into how the company aims to grow and, by extension, influence its shareholder base and overall value.

Understanding Paycom's Ownership Structure

Paycom's ownership is primarily determined by its shareholders, with founder Chad Richison holding a significant stake. The company operates under a one-share-one-vote principle.

• Founder Chad Richison holds significant voting power.
• The board includes independent directors appointed in 2024.
• New directors enhance board expertise and governance.
• No recent activist investor campaigns have been detailed.

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Over the past few years, the ownership landscape of the company has seen dynamic shifts, influenced by strategic capital allocation and evolving leadership. The company has consistently focused on returning value to its shareholders through share repurchase programs. These actions have a direct impact on who owns Paycom, as they reduce the total number of outstanding shares, potentially increasing the ownership percentage of remaining shareholders.

In 2024, the company demonstrated a significant commitment to its buyback strategy, repurchasing over $144 million worth of its shares. This trend continued into 2023 and 2024, with a combined repurchase of more than 2.4 million shares, which accounts for approximately 4% of the total shares outstanding, valued at around $445 million. As of the close of 2024, there was still a substantial $1.48 billion available under the existing buyback authorization. However, a notable deceleration in the pace of these repurchases was observed in the first quarter of 2025, with only $5.2 million in shares bought back, a stark contrast to the $44 million and $90 million repurchased in the preceding two quarters. This reduction might signal a recalibration of the company's capital deployment strategy.

Leadership transitions have also been a key development, shaping the company's strategic direction and, by extension, its ownership dynamics. In May 2024, Randy Peck was elevated to the position of Chief Operating Officer. More recently, Bob Foster took on the role of Chief Financial Officer in February 2025, succeeding Craig Boelte. Amy Walker was appointed Chief Sales Officer in April 2025. These executive appointments are indicative of a concerted effort to bolster leadership capabilities and foster innovation within the organization, which can influence investor confidence and long-term shareholder value.

Share Buyback Impact

Share buybacks reduce the number of outstanding shares, potentially increasing the ownership stake of remaining shareholders. This strategy is often employed to return capital to investors and can signal management's confidence in the company's valuation.

Leadership Evolution

Recent executive appointments reflect a strategic focus on strengthening operational and financial leadership. Such changes can influence strategic decisions and market perception, indirectly affecting Paycom ownership trends.

Institutional Investor Trends

Across the broader market, institutional ownership has been on the rise. Paycom has also observed a slight uptick in its institutional holdings in early 2025. This trend suggests growing interest from large investment firms and funds in the company's stock.

Investment in Innovation

The company continues to allocate significant resources to research and development, with R&D expenses reaching $242.6 million in 2024. This commitment to innovation is crucial for maintaining a competitive edge in the Human Capital Management software sector and is a key factor for investors considering Paycom stock ownership.

The company's financial projections for 2025 indicate continued growth, with an anticipated total revenue between $2.015 billion and $2.035 billion, representing an approximate 8% increase at the midpoint. Furthermore, adjusted EBITDA is expected to fall within the range of $820 million to $840 million. These financial forecasts are vital for understanding the company's performance and its appeal to various stakeholders, including those interested in Paycom ownership and the Competitors Landscape of Paycom.

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