Rachael Gannon
Paycom SoftwareAbout Rachael Gannon
Rachael Gannon, 39, is Paycom’s Chief Automation Officer effective August 18, 2025; she previously served as Executive Vice President of Product and Development (April 2025–Aug. 2025) and EVP of Product (Nov. 2023–Apr. 2025) after earlier product management leadership roles; she joined Paycom in 2013 and holds a B.B.A. in Business Administration and Management from Southwestern Christian University . Paycom delivered 2024 revenue of $1.883 billion (+11% YoY), adjusted EBITDA of $775.4 million (41.2% margin), and GAAP net income of $502.0 million (26.7% margin), establishing the financial backdrop for Gannon’s automation mandate . For context, the company-reported cumulative TSR value for a $100 investment since 12/31/2019 stood at $78.42 as of 12/31/2024 (company methodology), while adjusted EBITDA and revenue are key pay-for-performance anchors in Paycom’s program .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| Paycom Software, Inc. | Executive Vice President, Product & Development | Apr 2025–Aug 2025 | Led product and development as the firm accelerated full-solution automation, supporting client ROI . |
| Paycom Software, Inc. | Executive Vice President, Product | Nov 2023–Apr 2025 | Drove product strategy; stepped in to lead the Product department in 2023 . |
| Paycom Software, Inc. | Product management leadership roles | Aug 2020–Nov 2023 | Advanced automation across offerings; supported differentiated client value proposition . |
| Paycom Software, Inc. | Service department (earlier roles) | Pre-2020 | Built client-centric orientation foundational to product automation outcomes . |
External Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| — | — | — | None disclosed in SEC filings/press release . |
Fixed Compensation
| Component | Terms | Effective date(s) |
|---|---|---|
| Base salary | $525,000 annualized | Aug 18, 2025 (appointment as CAO) . |
| 2025 Bonus | $200,000 payable in quarterly installments; remaining $50,000 due in Q3 Oct 2025 and $50,000 due in Q4 Jan 2026 per prior program | 2025 (transitional) . |
| Employment status | At-will employment (letter supersedes prior 2023 offer letter) | Aug 18, 2025 . |
Performance Compensation
| Plan/Instrument | Metric(s) | Weighting/Design | Target/Calibration | Payout/Notes |
|---|---|---|---|---|
| Annual Incentive Plan (AIP) – eligibility | Company AIP eligibility begins in 2026; metrics and targets set annually by Compensation Committee | N/A for 2025; eligible 2026 onward | To be determined annually | Structure consistent with executive program . |
| Long-Term Incentive (2023 LTIP) – eligibility | Equity awards (e.g., RSUs/PSUs) under 2023 LTIP | Mix determined each annual cycle | Committee uses peer data and stockholder feedback | Eligibility confirmed in offer letter; award specifics not disclosed for 2025 . |
| Company 2024 AIP context (design reference) | Revenue (primary), with EBITDA modifier for certain execs; revenue retention for others | 100% revenue for certain execs; modifier reduced payout if adj. EBITDA below target | Revenue threshold $1,860mm (0%); target $1,870mm (100%); max $1,885mm (200%); adj. EBITDA target $725mm | Actual 2024: Revenue $1,883.2mm → 188.1% payout where applicable; adj. EBITDA $775.4mm (no deduction) . |
| Company 2024 PSUs context (design reference) | Revenue (one-year performance) | Capped at target for most execs | Vest at 100% if revenue ≥ $1,870mm | 2024 PSUs vested at target based on revenue of $1,883.2mm . |
Note: The “Company … context” rows illustrate how Paycom calibrated performance incentives in 2024; Ms. Gannon’s 2025 cash bonus is transitional (fixed installments), and her 2026 plan metrics will be set by the Committee .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Total beneficial ownership | 11,694 common shares directly (includes 9,451 unvested restricted shares) and 10 shares indirectly via spouse, per Form 3 filed Aug 25, 2025 . |
| Vested vs. unvested | Direct holdings include 9,451 unvested restricted shares; majority of direct position is unvested (implies limited near-term sale capacity) . |
| Options/derivatives | No derivative securities reported on Form 3 (Table II blank) . |
| Pledging/hedging | No pledging disclosed; insider trading policy requires pre-clearance for any hedging transactions . |
| Ownership guidelines | Executives must hold stock equal to 3x base salary (CEO 6x; directors 5x of cash comp) . |
| Compliance timing | New executives generally have 5 years to comply; compliance as of Mar 12, 2025 was confirmed for then-current executive officers (Ms. Gannon was appointed Aug 2025) . |
Employment Terms
| Term | Detail |
|---|---|
| Title and start | Chief Automation Officer; expected start date Aug 18, 2025 . |
| Base salary | $525,000 annualized . |
| 2025 bonus (transitional) | $200,000 for 2025 payable quarterly; remaining $50,000 in Q3 Oct 2025 and $50,000 in Q4 Jan 2026 . |
| 2026 AIP eligibility | Eligible for AIP beginning in 2026; performance criteria/payouts set by Compensation Committee . |
| Equity eligibility | Eligible for equity awards under the 2023 LTIP per the Company’s annual executive grant cycle . |
| Restrictive covenants | Employee Non‑Solicitation Agreement (Feb 3, 2025) and IP Assignment/Confidentiality/Class Action Waiver Agreement referenced in letter . |
| At‑will | Employment is at-will; letter supersedes prior 2023 offer letter . |
| Severance / CoC cash | No individual severance or change-in-control cash multiple disclosed for Ms. Gannon in the letter . |
| Equity CoC treatment (plan-level) | Under 2023 LTIP: if PSUs are not assumed in a change in control, they vest per plan; if assumed and the executive is terminated without cause/for good reason within 12 months post‑CoC, PSUs vest (double-trigger); time-based RSAs/RSUs vest if not assumed; otherwise continue on original schedule . |
| Clawback | Executive officer compensation subject to recovery upon an accounting restatement per company Clawback Policy (SOX 304 and applicable rules) . |
Investment Implications
- Near-term selling pressure appears limited given the majority of her directly held shares are unvested restricted stock (9,451 of 11,694), with no options disclosed; as awards vest under the LTIP, incremental supply could emerge but will be paced by vesting cadence .
- 2025 cash compensation is largely fixed (transitional), but from 2026 her pay is expected to be more performance-levered via AIP and equity (consistent with company practice of revenue/retention metrics and PSU/RSU mix), aligning incentives with topline growth and automation-driven ROI outcomes .
- Governance protections mitigate downside: pre-clearance for hedging, robust ownership guidelines (3x salary for execs), and a restatement-based clawback; equity awards feature double-trigger vesting under the 2023 LTIP, balancing retention with stockholder alignment .
- Track record and role fit: a 12-year internal leader who led Product and now Automation underscores continuity in Paycom’s automation thesis amid solid 2024 execution (11% revenue growth; 41.2% adjusted EBITDA margin); her mandate is directly tied to the company’s core value driver—automation-led client ROI—supporting execution confidence .
Sources: Paycom 2025 DEF 14A (filed 4/3/2025), Paycom 8‑K and press release (8/18/2025), Form 3 (filed 8/25/2025). All citations embedded above.