Chad Richison earns more than – we’ll mention someone – Elon Musk of Tesla. And more than the CEOs of Amazon, Netflix, bank JPMorgan Chase and any other American company. With his $ 211 million compensation package, he is the highest-earning CEO in the US.
You’ve probably never heard of his name, but American CEO Chad Richison is doing well. That has The New York Times calculated this week. In comparison: where the richest man in the world Jeff Bezos – ex-Amazon – gets a nice reward package of 1.7 million dollars, that is of course nothing compared to the 211 million dollars that Chad Richison earned in 2020. But who is this Chad Richison? And why does he get such a bonus?
Chad Richison is CEO of Paycom
Who is this man who managed to rake in so much money in 2020? Chad Richison is CEO of the software company Paycom. He founded this company in 1998. At that time it was one of the few companies that digitized and personalized HR management, for both employers and employees. Paycom supplies software to some 31,000,000 customers, inside and outside the US.
Like many other CEOs in Silicon Valley, he doesn’t just get his salary deposited into his account. To motivate CEOs to increase the stock market value of their company, many American companies work with a performance-related compensation package. This means that the company sets objectives in advance, which the CEO must achieve.
Big performance bonus
This is also the case with Chad Richison and Paycom. If he had not achieved the goals, he would not have received $ 211 million, but “only” $ 20 million. Still an absurd amount for people like you and me, but of course a reward of a different caliber.
Setting the goals and the associated remuneration package seems to be working, as Paycom’s stock has been doing well for years. Since it went public in 2014, Paycom has outperformed most other software companies in the S&P 500 stock index. People who have invested in Paycom since 2017 have seen an average annual return of 26 percent.
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