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.
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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.

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The billionaire CEO of Paycom just paid $26.5 million for a beachfront Malibu mansion that took 12 years to build and blends into the rocks. Take a look inside.

malibu beach house paycom ceo
The previous owners bought the beachfront property in 2000 and spent 12 years building their dream home.

  • Paycom CEO Chad Richison, just paid $26.5 million for a secluded Malibu estate that sits right on the beach, James McClain first reported for Dirt, a luxury real-estate news site.
  • Richison bought the home from attorney Dale Kinsella and skincare company founder Liz Edlich, who picked up the property in 2000 and spent 12 years building the beach house, per Dirt.
  • The 3,800-square-foot home, which has three bedrooms and five bathrooms, is built right into the rocks on the edge of the water.
  • Richison’s new neighbors include Lady Gaga and Red Hot Chili Peppers bassist Flea, Shawn Elliott of Nest Seekers International, who co-brokered the sale with Douglas Elliman, told Business Insider.
  • Visit Business Insider’s homepage for more stories.

Chad Richison, the CEO of payroll technology company Paycom, just paid $26.5 million – the full asking price – for a secluded Malibu beach house, Dirt reported.

The home, known as Il Pelicano, boasts a secluded location on the beach that sets it apart from the nearby homes above on the cliff, Shawn Elliott of Nest Seekers International, who co-brokered the sale with Douglas Elliman, told Business Insider. (Shirley Sherman of Douglas Elliman, who also held the listing, declined to comment.) 

“This is really the epitome of luxury,” Elliott said of the home. “You can be in anywhere in this house. You can be in the South of France, the Cote d’Azur, and you wouldn’t know it. This house is just a piece of heaven. I think that’s why it went for full price.”

Richison, who’s worth $3.6 billion according to Forbes, bought the property from Radical Skincare CEO Liz Edlich and attorney Dale Kinsella, who paid $2 million for the property in 2000 and spent 12 years building the beach house, according to Dirt.

Look inside the Paycom CEO’s new home.

Chad Richison, the CEO of Paycom, paid $26.5 million for his new beachfront mansion in Malibu, as Dirt first reported.

malibu beach house paycom ceo

Richison, who’s worth $3.6 billion according to Forbes, also owns homes in Edmond, Oklahoma, and Florida’s Marco Island, according to Dirt. Richison founded Paycom, which provides payroll and human resources services, in 1998 and took the company public in 2014.

Earlier this month, the CEO told Forbes that he had signed the Giving Pledge, the campaign for wealthy individuals to donate half their wealth to charity that was started by two of the world’s richest men, Warren Buffett and Bill Gates.

A spokesperson for Richison’s company did not immediately respond to Business Insider’s request for comment for this story.

The previous owners, Radical Skincare CEO Liz Edlich and attorney Dale Kinsella, paid $2 million for the property in 2000 and spent 12 years building the beach house, according to Dirt.

malibu beach house paycom ceo

“To their credit, this couldn’t have been an easy build and I’m sure it cost them millions of dollars to build it,” Elliott told Business Insider. “… I think it was probably very difficult to part with it, but I think they moved on.”

Edlich and Kinsella did not immediately respond to Business Insider’s request for comment.

The Il Pelicano house sits close to the water, secluded from the neighboring homes up on the cliff.

malibu beach house paycom ceo

Neighbors include Red Hot Chili Peppers bassist Flea, Lady Gaga, and Michael Milken, the former financier and “junk bond king” who President Trump pardoned earlier this year, Elliott told Business Insider.

The 3,800-square-foot home sits on a little over half an acre.

malibu beach house paycom ceo

A significant portion of the two-story home’s square footage is made up of outdoor space.

The master bedroom features a fireplace and a private wraparound terrace.

malibu beach house paycom ceo

Source: Nest Seekers International

The master bathroom has a deep soaking tub.

malibu beach house paycom ceo

Source: Nest Seekers International

The home’s other two bedrooms both offer panoramic views of the water and the surrounding cliffs.

malibu beach house paycom ceo

Source: Nest Seekers International

Many of the materials and décor in the home were sourced from Edlich’s travels around the world, according to Dirt.

malibu beach house paycom ceo

Source: Dirt

The chandelier in the spacious gourmet kitchen, for example, was made from a fossilized Amazonian jungle vine.

malibu beach house paycom ceo

Source: Dirt

And the mantle in the living room was once part of an antique stone door from India.

malibu beach house paycom ceo

Source: Dirt

The beach house was designed with both an indoor and outdoor lifestyle in mind.

malibu beach house paycom ceo

Source: Nest Seekers International

There’s no shortage of outdoor spaces for dining, entertaining …

malibu beach house paycom ceo

Source: Nest Seekers International

… and lounging.

malibu beach house paycom ceo

Most of the living areas appear to open up to the outdoors.

malibu beach house paycom ceo

Source: Nest Seekers International

According to Elliott, Il Pelicano is the “crown jewel” of the Malibu coastline.

malibu beach house paycom ceo

The home boasts private access to two beaches, with steps leading down to the sand. 

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