Paycom Software Business Summary

Paycom Software, Inc. (PAYC) operates a cloud-based Software-as-a-Service (SaaS) model, generating approximately 95% of its revenue through recurring subscription fees for its unified human capital management (HCM) platform. The company’s primary business segments are categorized into Recurring and Other—which includes payroll processing and HR modules like Beti (employee-driven payroll) and the AI-powered IWant tool—and Implementation and Other, covering one-time setup and integration services. Paycom distinguishes itself in the market through a proprietary single-database architecture that eliminates the need for data integration across multiple platforms. It primarily competes with ADP, Paylocity, Workday, and UKG, positioning itself as a high-automation leader for mid-market enterprises seeking to reduce administrative overhead through employee self-service. The company was founded in 1998 by Chad Richison, who continues to serve as President, CEO, and Chairman of the Board, drawing on a career-long pedigree in payroll sales and HR digital transformation. The executive leadership team includes CFO Bob Foster, a former Ernst & Young senior partner who took the role in early 2025, and Shane Hadlock, who was elevated to Chief Technology Officer in August 2025 after over a decade of scaling Paycom’s IT infrastructure. In January 2026, veteran executive Jeff York returned as Chief Sales Officer to spearhead upmarket expansion. Paycom’s board features prominent industry figures such as Henry Duques, former CEO of First Data Corporation, and Sharen Jester Turney, former CEO of Victoria’s Secret, while the company maintains a high institutional ownership base led by firms such as Harris Associates and Baillie Gifford.