Ryan Bergstrom
PAYCHEXAbout Ryan Bergstrom
Ryan Bergstrom, age 46, is Chief Product Officer (CPO) and a member of the Executive Committee at Paychex, joining upon the close of the Paycor acquisition in April 2025 after serving as Paycor’s Chief Product & Technology Officer (Jan 2024–Apr 2025) and Chief Product Officer (Feb 2018–Jan 2024); earlier roles included leadership positions at Ultimate Software, Epicor, and Spectrum Human Resource Systems . Under Paychex’s FY2025 performance backdrop, the company delivered total service revenue of $5.4B (+5% YoY), operating income of $2.2B (+2% YoY), adjusted diluted EPS of $4.98 (+6% YoY), and a 5‑year TSR of 151%, providing context for incentive design and performance alignment across senior executives . Management positioned Bergstrom to drive product integration and innovation post‑deal; the CEO publicly confirmed his appointment to Paychex CPO concurrent with closing , and Bergstrom has articulated an AI-enabled roadmap for Paychex’s platforms in external communications .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| Paychex | Chief Product Officer; Executive Committee member | Since Apr 2025 | Leads product strategy and integration following Paycor acquisition |
| Paycor HCM | Chief Product & Technology Officer | Jan 2024–Apr 2025 | Led combined product and technology; joined Paychex upon acquisition |
| Paycor HCM | Chief Product Officer | Feb 2018–Jan 2024 | Scaled HCM product portfolio during growth phase |
| Ultimate Software | Leadership positions | n/d | Enterprise HCM experience |
| Epicor | Leadership positions | n/d | Enterprise software operating experience |
| Spectrum Human Resource Systems | Leadership positions | n/d | HR systems domain expertise |
External Roles
- No public company directorships or external board roles disclosed in Paychex filings reviewed.
Performance Compensation
Company executive incentive program design (FY2025) relevant to senior officers:
| Element | Metric(s) | Weighting | Target/period | Payout mechanics | Vesting |
|---|---|---|---|---|---|
| Annual cash incentive | New business revenue; service revenue; operating income (net of certain items) | Not disclosed per individual; used for all NEOs | FY2025 | Payout varies vs pre‑set thresholds/targets/max; capped | Cash (annual) |
| Performance‑based RSUs (PSUs) | Service revenue; operating income (net of certain items); TSR modifier | CEO/CFO PSU portion increased to 60% of total equity at target; others 50% | 3‑year performance period for FY2025 grants | Earned based on performance vs goals; TSR serves as a modifier | Cliff vest after performance period; additional service condition applies |
| Time‑based RSUs | N/A | Part of annual equity mix | N/A | N/A | Vest 1/3 per year over 3 years |
| Stock options | N/A | Part of annual equity mix | 10‑year term | N/A | Vest 1/3 per year over 3 years |
Notes:
- Non-compete/forfeiture and clawback provisions apply to incentive compensation and equity awards .
- Paychex does not disclose Bergstrom as a FY2025 Named Executive Officer (NEO); NEOs listed were CEO, CFO, SVP Paycor, SVP Sales, SVP IT & Product Development .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Initial beneficial ownership on joining | Form 3 filed April 16, 2025 indicated “No securities are beneficially owned” . |
| Subsequent insider transactions | No Form 4 sales/purchases located in document search to date; continue monitoring [Search attempt returned none]. |
| Hedging/pledging policy | Hedging, pledging, short sales prohibited for executive officers and directors . |
| Ownership guidelines | CEO 6x base salary; SVPs 3x; restrictions on sales of vested awards until guideline met (applies to NEOs; Bergstrom not an FY2025 NEO) . |
Employment Terms
| Topic | Terms |
|---|---|
| Employment agreement | Paychex discloses no employment contracts for NEOs; employment of all executive officers is at‑will . |
| Change‑in‑control (CIC) | Company CIC Plan provides double‑trigger severance (CIC plus qualifying termination within 12 months); no 280G excise tax gross‑ups . |
| Non‑compete/forfeiture | Equity agreements include non‑compete, non‑solicitation, confidentiality; violations allow cancellation and recovery (including vested awards) . |
| Clawback | Clawback policy covers annual incentive and performance‑based stock awards upon an accounting restatement . |
| Insider trading windows | Trading permitted only in open windows; event‑specific blackouts may apply . |
Track Record and Execution Context
- Appointment and role: Paychex CEO confirmed Bergstrom’s move from Paycor to Paychex CPO at the time of acquisition closing; he is tasked with integrating the product roadmap across platforms and accelerating innovation .
- Strategic emphasis: As Paychex advances AI in HCM, Bergstrom has publicly emphasized AI‑enabled capabilities and productivity impacts in platform strategy .
- Company performance context: FY2025 delivered 5% service revenue growth, 2% GAAP operating income growth, 6% adjusted EPS growth, and 151% 5‑year TSR—key context for incentive outcomes and pay‑for‑performance framing across senior leadership .
Governance and Compensation Committee Context
- Committee/consultant: Compensation & Leadership Committee (independent directors) oversees senior pay and retains FW Cook as independent consultant; independence reviewed with no conflicts found .
- Peer group for benchmarking: ADP, Intuit, Fiserv, Global Payments, Jack Henry, Gartner, Fair Isaac, Equifax, TransUnion, Moody’s, Verisk, WEX, SS&C, Corpay, Broadridge, Euronet (used for FY2025) .
- Say‑on‑pay: At the 2024 Annual Meeting, ~95% of votes supported NEO compensation; FY2025 program retained core design with increased performance focus for certain roles .
Investment Implications
- Alignment and selling pressure: As of his initial Form 3, Bergstrom reported no beneficial ownership, implying a near‑term absence of insider selling pressure; future RSU/option grants (if any) will become visible via Forms 4—monitor filings to gauge supply overhang as vesting commences . Company policy prohibits hedging/pledging, reducing misalignment risk from collateralized holdings .
- Retention and incentives: Employment is at‑will, but equity awards carry non‑compete/forfeiture and clawback provisions, and CIC protection is double‑trigger with no excise tax gross‑ups—structures that balance retention with shareholder protections .
- Execution watch‑items: Bergstrom’s remit centers on product integration and AI‑driven innovation post‑Paycor; success is measurable through revenue growth, operating income expansion, and progress on platform integration milestones highlighted by management .
- Governance backdrop: Strong external support for pay practices (95% say‑on‑pay) and a seasoned C&L Committee with an independent consultant indicate a relatively low governance risk environment for incentive design and oversight .
Monitoring priorities: (1) Upcoming Form 4s for initial PAYX equity grants and any subsequent sales; (2) disclosures in the next proxy to see if Bergstrom becomes an NEO with detailed compensation and ownership breakdown; (3) product and AI roadmap milestones and synergy realization in earnings commentary as integration matures .