What is Paycom boss Chad Richison's net worth? Inside highest paid CEO's $211M package and philanthropy work
Late last year, Richison reportedly signed the Giving Pledge created by Bill Gates and Warren Buffett, publicly promising to give away at least half his wealth
Chad Richison, the founder and CEO of payroll processor Paycom Software Inc, became the highest-paid CEO in the S&P 500 after he was awarded a compensation package worth more than $200M.
The company disclosed the compensation package of the Oklahoma City billionaire in the annual proxy statement filed with the Securities and Exchange Commission last week. This makes him the highest-paid chief executive. The online payroll and human resource technology provider based in Oklahoma City revealed that it awarded Richison $211M in compensation in 2020.
In addition to that, Richison was awarded 1.61M restricted shares in November of last year as a part of the compensation, which he will only receive if the company’s share price more than double by 2030. According to The Wall Street Journal, if he is awarded the shares, then the CEO could have close to $2B added to his personal wealth. The shares are currently estimated to be worth around $702M.
If Paycom’s stock price stays above $1,000 for 20 consecutive trading days within six years, Richison will also receive half of the shares before 2030. The price is currently at less than $400.
What is Chad Richison's net worth?
Richison, 50, founded Paycom in 1998. He made the technology company public in 2014 with its stock price reportedly rising by 108.72 per cent over the last year alone. Paycom's market value jumped from $2B five years ago to $22.7B based on Monday's, April 5, closing stock price, according to the latest report in the Wall Street Journal. In 2019, he went on to be ranked as one of the top 100 CEOs nationally, even above Apple's Tim Cook.
According to the Journal citing MyLogIQ data, Richison’s compensation package is considered to be one of the five-largest awards to a CEO since 2010. Apple CEO Tim Cook received the second-highest award in 2011 worth $378M, while Tesla CEO Elon Musk topped the list with shares awarded worth around $2.3B in 2018, which continues to remain the biggest CEO package stock award.
Jason Clark, chairman of the Paycom board’s compensation committee, told the Journal that the full award of shares will only be granted if Richison achieves “aggressive performance goals”. “Mr Richison’s recent performance equity award is structured to align with stockholders’ interests, as it requires significant value creation for them before he can realise any value from the grant,” Clark reportedly said, adding, “This award is entirely dependent on Mr Richison achieving aggressive performance goals - which will generate tremendous value for our stockholders."
Late last year, Richison reportedly signed the Giving Pledge created by Bill Gates and Warren Buffett, publicly promising to give away at least half his wealth. He is also the founder of Green Shoe Foundation, a nonprofit that aims to improve people's mental health through counseling and therapy sessions.
His 2020 compensation package makes Richison the highest-paid CEO in the S&P 500 based on disclosures so far, according to research firm MyLogIQ. According to Forbes data, Richison has a net worth of around $2.9B, which makes him 1,064 on a list of the world's billionaires. He has given away between 1% to 4.99% of his wealth, the outlet reported. He earns a strong 9 out of 10 on the Forbes' self-made score.