Business

CEO and founder of payroll processor Paycom Software, Chad Richison

Chad Richison
Written by Ralpha

In 2003, Paycom Software CEO Chad Richison was awarded a compensation package worth more than $200 million, making him the highest-paid CEO in the S&P 500. Earlier this week, the Oklahoma City billionaire’s compensation package was disclosed in the company’s annual proxy statement. As the most highly paid chief executive, Chad Richison received $211M in compensation in 2020 from a company based in Oklahoma City that provides online payroll and human resource software.

Aside from that, Richison received restricted shares as part of his compensation in November of last year, which he will receive only if the company’s shares more than double by 2030. It is estimated that the shares are worth roughly $702 million, so if the CEO is awarded them, Chad Richison will have added close to $2 billion to his wealth. Achieving a 20 consecutive trading day price above $1,000 for Paycom’s stock over the next six years will also give Richison half of the stock before 2030.

Currently, the stock is under $400. According to the latest Wall Street Journal report, Richison founded Paycom in 1998. In 2014, he made the technology company public, causing its stock price to rise by 108.72 per cent in the last year alone. The latest report from the Wall Street Journal indicates that Paycom’s market value increased from $2 billion five years ago to $22.7 billion on Monday.

Chad Richison

It was only in 2019 that he was ranked among the top 100 CEOs nationwide, even higher than Tim Cook, the CEO of Apple. A report by the Journal citing MyLogIQ data indicates that Richison’s compensation package ranks among the five largest awards to a CEO since 2010. While Tim Cook was awarded the second-highest award in 2011, worth $378M, Tesla CEO Elon Musk was awarded around $2.3B worth of shares in 2018, which continues to be the largest package of shares awarded to a CEO.

The Giving Pledge, created by Bill Gates and Warren Buffett, was signed by Richison late last year. In addition to founding the Green Shoe Foundation, he is involved with counselling and therapy sessions that aim to improve people’s mental health. MyLogIQ research firm reports that Richison is the highest-paid CEO in the S&P 500 based on disclosures.

The Forbes report shows Richison is worth around $2.9 billion, which puts him at 1,064 on the list of billionaires. According to the outlet, Forbes gives him 9 out of 10 self-made scores based on his giving away between 1% and 4.99% of his wealth.