Paycom founder Chad Richison has become the highest-paid CEO in the S&P 500 after receiving a 2020 compensation package worth $ 211 million, it has been revealed.
Richison, who founded the salary processor in 1998, got 1.61 million limited shares in November – which he will only receive if the company’s stock prices more than double by 2030, the Wall Street Journal reported.
Richison, 50, has become the highest-paid CEO in the S&P 500, according to data from research firm MyLogIQ.
His limited stock grant could eventually add more than $ 2 billion to his fortune over the next 10 years and is estimated to be closer to $ 702 million, according to a calculation by ISS ESG, the Wall Street Journal reported.
According to MyLogIQ data, the compensation package is one of the top five awards for a CEO since 2010, according to data from MyLogIQ – according to the Wall Street Journal.
Paycom founder Chad Richison has become the highest paid CEO in the S&P 500 after receiving a 2020 compensation package worth $ 211 million. He is in the picture with his wife Charis
Richison only gets the limited stock for ‘reaching aggressive performance goals’
Compensation package is one of the top five rewards to a CEO since at least 2010, MyLogIQ data shows
Elon Musk received the largest CEO award in 2018 when he received shares worth $ 2.3 billion from his company Tesla.
Apple’s Tim Cook received the second-largest award worth $ 378 million in 2011 and Sundar Pichai from Alphabet Inc. received a package worth $ 280.6 million from Google’s parent company in 2019.
Jason Clark, chairman of the Paycom Board’s compensation committee, told the WSJ that the price hinges on Richison’s achievement of aggressive performance goals.
Mr. Richison’s recent performance pay is structured to align with shareholders’ best interests as it requires significant value creation for them before he can derive any value from the award, ”said Clark.
“This award is entirely dependent on achieving Mr. Richison’s aggressive performance targets – which will generate tremendous value for our shareholders.”
Richison will only get half of the stock if the company’s stock price remains above $ 1,000 for 20 consecutive trading days within six years, the outlet reported. He will get the other half if the stock price hits $ 1,750 for twenty consecutive days by the end of 2030.
He won’t get additional shares until 2026, the company said.
Paycom stock prices closed at about $ 378 on Monday, the WSJ reported.
The company went public in 2014 and stock prices have risen sharply over the past year, outperforming the S&P 500. Paycom stock prices are up 108.72% over the past year, while the S&P 500 is up 53% over the past year increased.
“Paycom’s market value has increased from $ 2 billion five years ago to $ 22.7 billion based on Monday’s closing price,” the Wall Street Journal reported.
According to Forbes data, Richison has a net worth of about $ 2.9 billion, making him 1064 on a list of the world’s billionaires. He has given away between 1% and 4.99% of his assets, the outlet reported.
Richison, from Tuttle, Oklahoma, has a 9/10 rating on Forbes’ homemade score – making him a ‘true rags-to-riches’ story, according to the Wall outlet
Growing up in Tuttle, Oklahoma, I learned that if I wanted something, I had to work hard for it. That upbringing gave me a do-for-yourself-and-others spirit, and I’m very grateful for that, ” Richison wrote while signing The promise to give.
‘I started my first haymaking business in high school. As a young entrepreneur I learned early on that you have to work hard, fulfill your obligations and surround yourself with good people because no one does it alone. ‘