Taking A Look At Paychex, Inc.

Paychex, Inc. was founded in 1971 by Tom Golisano with a startup budget of $3000.00, credit cards, loans and borrowed money from family and friends (Paychex, 2013). Per the Security Exchange Commission (EDGAR), Paychex, Inc. stock per share averaged $43.50 as of October 17, 2014 (SEC, 2014). Today, Paychex is one of the largest payroll companies in the industry that provides payroll and human resource outsourcing services. Over the years, Paychex has had great success in dominating the small-medium business market. Fourth quarter reports as of August, 2014 estimated the company revenue at $667 million (Paychex, 2013). Headquartered in Rochester, NY, Paychex is a leader in providing comprehensive payroll services and human resource services

Michael Gioja, Senior Vice President of information technology and product management development contends that Paychex will continue to meet the growing needs of their clients by focusing on bringing industry-leading products to the market (Paychex, 2014). Spring 2004, Paychex expanded their payroll and human resource services globally to Germany and is currently a leader in offering payroll and human resource services in Berlin. Recently, the company announced a joint-venture with Semco. Paychex and Semco are targeting Brazilian small and middle sized companies who employ less than 100 employees by offering comprehensive payroll services and HR services starting early 2014 (Semco, 2013). Both companies have recognized that Brazil has a vibrant market of approximately five million small businesses which accounts for 40 percent of wages earned in Brazil (Paychex, 2013). Favorable market conditions coupled with regulatory changes have increased the opportunity for Paychex to expand its U.S. based business within the Brazilian market. Fiscal year 2013, the company produced $2.3 billion in revenue (Paychex, 2013). Nationwide they continue to provide an ever-growing variety of payroll and human resource products and services that help clients run their businesses through streamlined integration of information

Paychex, Inc. established an Investors Choice Dividend Reinvestment and Direct Stock Purchase and Sale Plan (the “Plan”) for the convenience to our investors and shareholders. Over the years, stakeholders have been treated to a 34% compounded growth rate (Paychex, 2013). Stakeholders that have benefited greatly from the change and growth of the company are the clients, employees and investors. Clients reap the benefits of making the payroll process more efficient and affordable services while running their businesses. Employees and investors have also fared favorably well in receiving above marginal returns from Paychex stock options. In November 2014, the Board of Directors declared a regular quarterly dividend of $.38 per share payable to shareholders (FundingUniverse, n.d.). Employees have fared equally well with more over 100 employees becoming millionaires thanks to stock options (Paychex, 2013). In addition to issuing lucrative dividend returns; in 2013, Paychex, Inc. was named the World's Most Ethical Companies by The Ethisphere Institute (Business, 2013). Paychex has thrived on providing employees an atmosphere that fosters a healthy work life balance, and our comprehensive benefits package provides health care, retirement planning, education assistance, and much more. For the employees to be financially successful, they're motivated to make the company successful, and