Melissa King
Paylocity HoldingAbout Melissa King
Melissa King, age 50, serves as Senior Vice President of Product and Technology at Paylocity, appointed December 16, 2024; she holds a B.B.A. from the University of Alaska Fairbanks . In fiscal 2025, executive annual cash bonuses were tied 60% to Recurring and other revenue and 40% to Adjusted EBITDA; targets were set to require >$150 million (~12%) revenue growth and ~$50 million (~10%) Adjusted EBITDA increase versus fiscal 2024; actual performance produced a 138% payout of target for the plan (Melissa’s payout was prorated at 104% of base) . The company also utilizes performance stock units tied to recurring revenue and market stock units tied to TSR percentile vs the Russell 3000 for other NEOs; at Melissa’s hire, the committee determined her fiscal 2026 annual equity award (August 2025) would include RSUs, PSUs, and MSUs with an aggregate value of $3,500,000 .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Ellucian | SVP & Chief of Commercial Excellence | Sep 2024–Dec 2024 | Senior leadership in commercial excellence (company disclosure) |
| Ellucian | SVP & Chief Transformation Officer | Feb 2022–Sep 2024 | Led transformation functions (company disclosure) |
| Ellucian | SVP, Revenue Strategy & Operations | May 2019–Feb 2022 | Led revenue strategy & operations (company disclosure) |
External Roles
No public company board or external directorships disclosed for Melissa King in the proxy .
Fixed Compensation
| Component | Fiscal Year | Amount / Terms |
|---|---|---|
| Base Salary | FY2025 | $425,000 |
| Target Annual Cash Bonus | FY2025 | 75% of base (prorated from start date) |
| Actual Annual Cash Bonus (paid FY2026) | FY2025 | $237,412; 104% of base; 138% of target (prorated) |
| Sign-on Cash Bonus | On Hire | $275,000 |
Performance Compensation
Annual Cash Bonus Plan (FY2025)
| Metric | Weighting | Threshold | Target | Maximum | FY2025 Payout Factor | Melissa FY2025 Bonus (paid FY2026) |
|---|---|---|---|---|---|---|
| Recurring & other revenue | 60% | $1,404,000,000 | $1,434,000,000 | $1,464,000,000 | Above target (plan payout 138% of target) | $237,412 (prorated; 104% of base) |
| Adjusted EBITDA | 40% | $537,400,000 | $554,900,000 | $572,400,000 | Max achieved (plan payout 138% of target) | $237,412 (same as above) |
Notes:
- Melissa joined 12/16/2024; her FY2025 bonus was prorated for service time .
- Committee excluded Airbase acquisition impact when determining achievement .
Equity Awards
| Award Type | Grant Date | Shares/Value | Vesting | Performance Ties |
|---|---|---|---|---|
| RSUs (sign-on) | Jan 2, 2025 | 17,943 RSUs; grant date fair value $3,500,141 | 6.25% each three-month anniversary beginning Apr 1, 2025 | Time-based; no performance criteria |
| Annual FY2026 equity award (determined at hire) | Aug 2025 cycle | Aggregate target value $3,500,000 | As per annual program | Mix of RSUs, PSUs (recurring revenue), and MSUs (TSR percentile) |
| PSU program (FY2025 for other NEOs) | Aug 15, 2024 | Company program | 50%/25%/25% vest on 1st/2nd/3rd anniversaries based on FY2025 recurring & other revenue | Recurring & other revenue performance |
| MSU program (FY2025 for other NEOs) | Aug 15, 2024 | Company program | Earn 25% per period over 4 TSR performance windows ending Nov 30, 2026; Feb 28, 2027; May 31, 2027; Aug 31, 2027 | TSR percentile vs Russell 3000 |
Vesting activity:
- Shares acquired upon vesting FY2025: Melissa 1,121 shares; value realized $210,008 .
Equity Ownership & Alignment
| Item | As of | Amount / Policy |
|---|---|---|
| Beneficial ownership (common) | Sep 30, 2025 | 3,540 shares; includes 1,961 RSUs vesting within 60 days; “*” indicates <1% ownership |
| Unvested RSUs (Outstanding) | Jun 30, 2025 | 16,822 units; market value $3,047,978 at $181.19/share |
| Hedging/Pledging | Policy | Prohibited for named executive officers (no hedging or pledging) |
| Stock ownership guidelines | Policy | Robust guidelines in place; CEO multiple raised to 6x base salary in July 2025; guideline specifics for SVPs not disclosed |
Insider selling pressure indicators:
- Quarterly RSU vesting cadence creates regular delivery; 16,822 unvested RSUs outstanding at FY2025-end suggest continued vesting supply through FY2026+ .
- No pledging allowed; hedging prohibited, reducing misalignment risk .
Employment Terms
| Term | Detail |
|---|---|
| Employment status | At-will; employment agreement effective December 16, 2024 |
| Base salary & bonus | FY2025 base $425,000; target bonus 75% of base (prorated) |
| Severance (without cause) | 12 months of then-current monthly base salary, subject to release |
| Change-in-control (time-based equity) | All unvested time-based awards vest in full immediately prior to, and contingent upon, the change in control (single-trigger acceleration subject to continued employment through the date) |
| Change-in-control (performance awards) | PSUs/MSUs vest based on performance levels attained through the change-in-control date (subject to continued service through that date) |
| Death/Disability | Unvested time-based equity vests in full; performance awards remain outstanding and vest based on actual achievement, prorated by service days in the performance period |
| Non-compete / non-solicit | 12 months post-termination; confidentiality and IP assignment required |
| Clawback | Executive compensation clawback policy adopted, compliant with Nasdaq Rule 10D-1 |
Potential payments/benefits:
- Change-in-control equity acceleration (estimate at 6/30/2025): 16,822 shares; market value $3,047,978 .
- Death/Disability acceleration (estimate at 6/30/2025): 16,822 shares; market value $3,047,978 .
- Involuntary termination (without cause) cash severance: $425,000 .
Investment Implications
- Alignment: Compensation structure emphasizes performance—cash bonus tied to revenue and EBITDA, equity moving toward mix of RSUs/PSUs/MSUs; hedging/pledging prohibited and clawback in place, strengthening shareholder alignment .
- Retention risk: Sign-on RSU grant with quarterly vesting and single-trigger acceleration on time-based equity under change-in-control provides retention but also creates potential near-term selling cadence as tranches vest; severance at 12 months base offers moderate protection .
- Trading signals: FY2025 plan paid at 138% of target (Melissa prorated), indicating operational outperformance; continued RSU vesting may add predictable supply—monitor Form 4 filings for any sales post-vesting to assess pressure (proxy notes full Section 16 compliance except a former director) .
- Change-of-control economics: Single-trigger full acceleration of time-based equity and performance-based vesting of PSUs/MSUs at achieved levels could incentivize strategic optionality; estimated acceleration value for Melissa was ~$3.05 million as of 6/30/2025 .
- Governance: Strong “say-on-pay” result (95.5%) and use of independent compensation consultant; stock ownership guidelines exist, though SVP-specific multiples not disclosed—ongoing compliance should be monitored .