Steven Beauchamp
Paylocity HoldingAbout Steven Beauchamp
Steven R. Beauchamp is Executive Chairman and a director of Paylocity. He has served as Executive Chairman since August 5, 2024; he was Co-CEO from March 2022 to August 2024 and CEO from September 2007 to March 2022. He is 53, on the board since 2007, and holds a B.B.A. from Wilfrid Laurier University and an M.B.A. from Queen’s University . Company performance in fiscal 2025: total revenue $1.6B (+14% YoY), net income $227.1M, Adjusted EBITDA $583.0M; Paylocity’s TSR (value of $100) was $124.20 in FY2025 vs $90.38 in FY2024, underscoring improved shareholder returns during the period .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Paylocity | Executive Chairman; formerly Co-CEO; CEO | Exec Chair since Aug 2024; Co-CEO Mar 2022–Aug 2024; CEO Sep 2007–Mar 2022 | Led product and growth strategy across HCM platform; continuity of founder/CEO-led culture |
| Paychex, Inc. | VP Product Management; Corporate Officer | Sep 2002–Aug 2007 | Product leadership in payroll services, relevant to Paylocity’s HCM |
| Advantage Payroll Services | VP Payroll Operations | Aug 2001–Sep 2002 | Operations scale experience in payroll |
| Payroll Central | President | May 1999–Aug 2001 | General management; payroll domain expertise |
| ADP Canada | Operations Management | May 1995–Apr 1998 | Large-scale payroll operations foundation |
Fixed Compensation
| Metric | FY 2023 | FY 2024 | FY 2025 |
|---|---|---|---|
| Salary ($) | $625,333 | $554,876 | $340,842 |
| All Other Compensation ($) | $25,269 | $45,117 | $45,044 |
Notes: FY2025 approved base salary was reduced to $322,903 to reflect transition from Co-CEO to Executive Chairman .
Performance Compensation
Annual Cash Bonus (FY2025)
| Component | Weighting | Threshold | Target | Maximum | Actual Achievement | Payout as % of Target |
|---|---|---|---|---|---|---|
| Recurring & Other Revenue ($) | 60% | $1,404,000,000 | $1,434,000,000 | $1,464,000,000 | Above target (Airbase acquisition excluded) | 138% overall program payout |
| Adjusted EBITDA ($) | 40% | $537,400,000 | $554,900,000 | $572,400,000 | Maximum achieved | 138% overall program payout |
| Executive | Target Bonus (% of Salary) | Target ($) | Paid in FY2026 ($) | Paid as % of Salary | Payout vs Target |
|---|---|---|---|---|---|
| Steven R. Beauchamp | 100% | $322,903 | $445,606 | 138% | 138% |
FY2025 PSU Performance (Granted Aug 15, 2024)
| Metric | Threshold | Target | Maximum | Earned (% of Target) | Vesting |
|---|---|---|---|---|---|
| Recurring & Other Revenue ($) | $1,404,000,000 | $1,434,000,000 | $1,494,000,000 | 130% (Airbase acquisition excluded) | 50% on 8/15/2025; 25% on 8/15/2026; 25% on 8/15/2027 |
MSU Structure and Outcomes
| Measure | Target | Payout Curve | FY2022 MSU Outcome |
|---|---|---|---|
| Relative TSR vs Russell 3000 | 60th percentile for 100% payout | 25th=25%; 35th=50%; 60th=100%; 80th+=200% | 32nd percentile; 40% of target earned |
MSU performance periods for FY2025 grant: 25% potential vesting at each of 11/30/2026, 2/28/2027, 5/31/2027, 8/31/2027 .
Equity Awards Detail (Granted Aug 15, 2024 unless noted)
| Award Type | Target Grant Value ($) | Shares | Vesting |
|---|---|---|---|
| RSUs (time-based) | $1,000,000 | 6,690 | 6.25% quarterly from 11/15/2024 |
| PSUs (revenue-based) | $660,000 | 4,416 (target) | 50%/25%/25% on 8/15/2025/2026/2027; earned at 130% for FY2025 |
| MSUs (relative TSR) | $340,000 | 2,275 (target) | Four TSR periods ending 11/30/2026; 2/28/2027; 5/31/2027; 8/31/2027 |
Summary Compensation
| Metric | FY 2023 | FY 2024 | FY 2025 |
|---|---|---|---|
| Stock-Based Awards ($) | $19,975,163 | $10,214,535 | $2,213,025 |
| Non-Equity Incentive Plan ($) | $957,600 | $322,903 | $445,606 |
| Total Compensation ($) | $21,583,365 | $11,137,431 | $3,044,516 |
Option/Stock Activity
| Activity (FY2025) | Shares | Value Realized ($) |
|---|---|---|
| Options Exercised | 160,400 | $22,009,876 |
| Shares Vested (RSUs/MSUs) | 38,175 | $6,456,546 |
Equity Ownership & Alignment
| Beneficial Ownership | Shares | % of Outstanding |
|---|---|---|
| Steven R. Beauchamp | 1,910,177 | 3.5% (out of 54,376,395 shares) |
Breakdown and Controls:
- Includes 4,168 RSUs vesting within 60 days, 235,000 shares in IRIE Family Trust (spouse trustee), 100,000 in 2025 GRAT, and 69,138 via Gotham Triple Advantage Strategy LP where he retains investment control .
- Stock ownership guidelines: NEOs 2x base salary; CEO 6x; all covered individuals (including named executive officers) are currently compliant .
- Hedging and pledging of company stock are prohibited for insiders under Paylocity’s policy .
Outstanding Equity (as of June 30, 2025; $181.19/share)
| Type | Shares | Market Value ($) | Notes |
|---|---|---|---|
| Unvested RSUs (multi schedules) | 7,097; 9,400; 12,442; 5,436 | $1,285,905; $1,703,186; $2,254,366; $984,949 | Various grants vesting quarterly/annually |
| PSUs (earned, not fully vested) | 5,741 | $1,040,212 | FY2025 PSU earned at 130%; vesting 2025–2027 |
| MSUs (2022 earned) | 10,528 | $1,907,568 | FY2022 MSU payout at 40% earned |
| MSUs (2023 target outstanding) | 22,118 | $4,007,560 | Vests based on TSR by 9/1/2026 |
| MSUs (2024 target outstanding) | 2,275 | $412,207 | Four periods ending 2026–2027 |
Employment Terms
| Term | Detail |
|---|---|
| Agreement | Amended & Restated Employment Agreement effective Aug 5, 2024; at-will |
| Base Salary (FY2025) | $322,903; bonus target 100% of base |
| Severance (no cause) | 12 months of then-current monthly base salary; conditioned on release |
| Change-in-Control | Time-based equity vests in full immediately prior to/contingent upon CIC (single trigger for time-based awards) ; PSUs/MSUs vest based on performance achieved through CIC date |
| Death/Disability | Time-based equity vests in full; PSUs/MSUs prorated based on service days and actual performance |
| Restrictive Covenants | Non-compete and non-solicit for 12 months post-termination for NEOs |
| Clawback | Executive compensation recovery policy adopted Oct 2023 compliant with Nasdaq Rule 10D-1; awards subject to recoupment |
| Hedging/Pledging | Prohibited under insider trading policy |
Change-in-Control Acceleration (as of Jun 30, 2025)
| Shares Accelerated | Market Value ($) |
|---|---|
| 68,178 | $12,353,172 |
Board Governance
- Role: Executive Chairman and director; not on board committees .
- Independence: Not independent (executive officer); board has a majority of independent directors .
- Leadership Structure: Roles of Chairman and CEO separated; Lead Independent Director is Ronald V. Waters III, who presides over executive sessions .
- Attendance: Each director attended at least 75% of board/committee meetings in FY2025 .
- Director Compensation: Employee directors (including Beauchamp) do not receive director fees; director compensation shown only for non-employee directors .
Compensation Committee & Peer Group
- Committee: Independent members—Chair Robin L. Pederson; members Craig A. Conway, Andres D. Reiner, Ronald V. Waters III; independent consultant Compensia engaged; no interlocks .
- FY2025 Peer Group (used for benchmarking): Bentley Systems, Bill Holdings, BlackLine, Dayforce, DocuSign, Dynatrace, Elastic, Guidewire, HubSpot, Informatica, Manhattan Associates, Okta, Paycom, Paycor HCM, Procore, PTC, RingCentral, Smartsheet, The Trade Desk .
Say-on-Pay & Shareholder Feedback
- 2025 say-on-pay approval: approximately 95.5% For (48,411,725 For; 2,240,828 Against; 21,642 Abstain); committee maintained program structure reflecting strong support .
Related Perquisites and Red Flags
- Perquisites: Executive wellness screenings; spousal travel to President’s Club (with tax gross-ups) offered broadly; Beauchamp received spousal travel benefits consistent with program .
- No excise tax gross-ups on change in control; repricing prohibited without shareholder approval; hedging/pledging prohibited .
- Option Exercises: Significant FY2025 option exercise ($22.0M value realized), indicating potential liquidity events; company currently has no stock options outstanding plan-wide (last granted FY2016) reducing repricing risk .
Investment Implications
- Alignment: High beneficial ownership (3.5%) and strict ownership/hedging policies support shareholder alignment; PSU/MSU designs tie payouts to revenue growth and relative TSR, with FY2025 PSU earned at 130% reflecting strong operating results .
- Retention and CIC Economics: Single-trigger acceleration for time-based awards at CIC and pro-rata vesting for performance awards increase take-out costs but ensure continuity incentives; severance limited to 12 months of base salary mitigates cash burden .
- Trading Signals: Large FY2025 option exercises ($22.0M value realized) may indicate partial de-risking or diversification; monitor future Form 4s for continued sales vs retention of RSU/PSU/MSU settlements .
- Governance: Separation of Chair and CEO roles and strong independent oversight (Lead Independent Director; committee independence) reduce dual-role concerns; say-on-pay support (95.5%) suggests investor acceptance of pay-for-performance structure .