The CEO of a company you’ve probably never heard of earned $211 million in compensation last year – and the title of highest-paid chief executive, according to a new ranking

Paycom CEO Chad Richison
Paycom founder and CEO Chad Richison

  • Paycom founder and CEO Chad Richison was the highest compensated CEO in 2020, the New York Times reported.
  • The company provides cloud-based HR management software to 31,000 employers.
  • Since going public in 2014, the stock has vastly outperformed the S&P’s index of software companies.
  • See more stories on Insider’s business page.

Jeff Bezos may be the world’s wealthiest man, but his $1.7 million pay package from Amazon was nowhere close to making the list of the highest compensated CEOs in 2020.

The top spot on the New York Times’ list of industry titans, which includes the likes of GE, Netflix, and JPMorgan Chase, goes to a cloud-based HR management software provider based in Oklahoma City called Paycom.

CEO Chad Richison’s compensation package topped out at $211 million in 2020.

Richison founded Paycom in 1998, pioneering the employee self-service approach to HR management, which paved the way for things like enrolling in benefits or checking your pay stub from your phone.

The company now serves 31,000 clients with roughly 5 million individual profiles, mostly among mid-sized businesses with up to 5,000 employees.

Read more: HR was built on bias. Now it’s facing an evolution.

As it turns out, Richison won’t see the vast majority of this year’s compensation package for several more years, as the stock-based award is part of a long-term incentive plan detailed in the the company’s 2021 proxy statement.

In fact, Richison’s actual pay for 2020 will come out more in the range of $20 million if Paycom’s share price doesn’t hit certain targets.

That’s still a pretty high number, but a look at the company’s recent performance would suggest Richison is doing a good job as CEO. The company’s stock has outperformed S&P’s index of software companies by a shattering margin, with 26% annual returns since 2017.

Paycom seems to buck the narrative of wealthy CEOs being rewarded despite business being battered by the pandemic, with several awards for management and worker satisfaction, including one from Glassdoor for leadership during the COVID-19 crisis.

With this compensation package, the board is showing it wants Richison to keep it up.

In order for Richison to receive the full long-term incentive worth about $175 million, Paycom’s stock would have to climb from its current $400 value to $1,000 over the next six years and $1,750 over the next ten.

Richison’s award structure “requires significant value creation for them before he can realize any value from the grant,” Jason Clark, chair of Paycom’s compensation committee, said in a statement to Insider.

“This grant further aligns our CEO’s total compensation with the Company’s sustained growth over the next decade and provides a strong incentive to continue building the Company’s value,” he added.

Richison will not be eligible for further equity grants until 2026.

Read the original article on Business Insider

Experts are worried about the rise of vaccine skepticism

Hello,

Welcome to Insider Healthcare. I’m Lydia Ramsey Pflanzer, and this week in healthcare news:

If you’re new to this newsletter, sign up here. Tips, comments? Email me at lramsey@insider.com or tweet @lydiaramsey125. Now, let’s get to it…


First, some personal news – I got my first vaccine dose this week! As eligibility expands across the US, I’m excited to keep cheering on everyone who’s getting a dose (or two!).

As the mRNA started to tell my body how to mount an immune response, I read up on what Dr. Anthony Fauci told Aylin Woodward in an exclusive interview about vaccines.


Veran France vaccination health minister AstraZeneca
French Health Minister Olivier Veran receives a dose of the AstraZeneca-Oxford Covid-19 vaccine.

Oh, AstraZeneca…

It was another tough week for the vaccine from AstraZeneca and Oxford University.

European regulators said on Wednesday that they consider rare blood clots that can be fatal a side effect of AstraZeneca’s coronavirus vaccine.

Also on Wednesday, UK regulators cited the rare blood clots as a reason why people under 30 should no longer be offered the AstraZeneca vaccine.

Germany and France are recommending that some people who got a first dose of the AstraZeneca vaccine switch to a different immunization for their second shots.

In the wake of the European regulators’ decision, we talked to experts to find out what they make of the rare side effect.

Their biggest worry is around the skepticism that’s growing around the vaccine.

Find out more>>

Getting AstraZeneca’s shot is safer than flying on a plane, experts say – the bigger problem is an ‘explosion of vaccine skepticism’


healthcare ceos 4x3

CEOs’ big paydays

Health insurance and health systems CEOs scored major paydays in 2020, despite a tumultuous year.

HCA’s CEO took home $83.6 million, and Cigna’s CEO made nearly $79 million.

Speaking of health insurers – the Centers for Medicare and Medicaid Services on Thursday said who it plans to work with in the first year of the direct contracting program.

It’s a lot of familiar names, like Clover Health, Oak Street Health, and more.

Also included is Humana, whose CEO is one of the 8 whose compensation we break down for 2020.

See the full chart>>

How 8 top healthcare execs scored massive paydays despite the pandemic


scales

The state of the digital weight loss industry

This week, Patricia Kelly Yeo took a closer look at the digital weight loss industry.

Investors have put millions into app-based approaches to weight loss. But experts Kelly talked to aren’t convinced it’s anything all that new.

These apps are hoping to gain popularity at a time when the weight loss market is shrinking.

Check it out>>

A new wave of digital weight loss companies are raking in millions in funding by relying on decades-old psychology principles, experts say


I’ll leave you with a new spot to find the pitch decks we’ve reported on over the years.

From seed and Series A to late-stage funding, here are the presentations healthcare startups used to raise millions from top VCs.


– Lydia

Read the original article on Business Insider