Stock-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2021

Summary of Nonvested Restricted Stock Awards and PSU Activity

The following table summarizes restricted stock awards activity for the nine months ended September 30, 2021:

	Time-Based					Market-Based
	Restricted Stock Awards					Restricted Stock Awards
	Shares			Weighted Average Grant Date Fair Value		Shares			Weighted Average Grant Date Fair Value
Unvested shares of restricted stock outstanding at December 31, 2020		559.8		$	156.48		1,748.5		$	115.91
Granted		137.8		$	426.59		42.9		$	331.35
Vested		(275.3	)	$	131.87		(138.5	)	$	189.86
Forfeited		(37.7	)	$	276.14		(5.0	)	$	331.35
Unvested shares of restricted stock outstanding at September 30, 2021		384.6		$	259.16		1,647.9		$	114.64

Summary of Unrecognized Compensation Cost and Related Weighted Average Recognition Period Associated with Unvested restricted Stock Awards and Unvested PSU Awards

The following table presents the unrecognized compensation cost and the related weighted average recognition period associated with unvested restricted stock awards and unvested PSU awards as of September 30, 2021.

	Restricted Stock
	Awards		PSUs
Unrecognized compensation cost	$	229,361	$	15,639
Weighted average period for recognition (years)		3.9		2.0

Market-Based Shares [Member]

Summary of Market-Based Shares Vesting Activity

The following table summarizes vesting activity for Market-Based Shares during the nine months ended September 30, 2021, the associated compensation cost recognized in connection with each vesting event and the number of shares withheld to satisfy tax withholding obligations:

Vesting Condition

Date Vested

Number of Shares

Vested

Compensation

Cost Recognized

Upon Vesting

Shares Withheld

for Taxes¹

Market-based (Total Enterprise Value = $27.7 billion)

September 11, 2021

138.5

5,000

60.3

(1)

All shares withheld to satisfy tax withholding obligations are held as treasury stock.

Performance-Based Restricted Stock Units [Member]

Summary of Nonvested Restricted Stock Awards and PSU Activity

The following table summarizes PSU activity for the nine months ended September 30, 2021:

	PSUs
	Units			Weighted Average Grant Date Fair Value
Unvested PSUs outstanding at December 31, 2020		—		$	—
Granted		57.9		$	564.68
Forfeited		(20.8	)	$	579.30
Unvested PSUs outstanding at September 30, 2021 ⁽¹⁾		37.1		$	556.50

(1)

A maximum of 92,814 units could be awarded based upon Paycom’s Relative TSR over the applicable performance periods.