When a company Founder & CEO whom owns 14% of the company’s equity pays himself $211 million (the approximate equivalent of one quarter’s revenue), it sends the wrong message to the management team and employees (not to mention shareholders). Perhaps if Paycom Software (ticker: PAYC) were doubling Revenues and EBITDA each year for five or more consecutive years a balloon payment in the form of PSUs would be warranted to Paycom founder and CEO Chad Richison. However, a $200 million-plus RSU-based compensation package is more than rich in our opinion. For this compensation package to have been passed suggests that Mr. Richison controls Paycom’s Board of Directors including the compensation process. Questionable corporate governance at best.
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