Company: ADP
Filing Date: 2025-09-25
Form Type: DEF 14A
Source: 0001308179-25-000607
Chunk: 7

Company: AUTOMATIC DATA PROCESSING INC
Filing Date: 2025-09-25
Form: DEF 14A
Chunk 7
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| ✓ | Clawback policy: We maintain a rigorous Clawback Policy which exceeds Nasdaq listing requirements and allows for the recovery of both cash and equity incentive compensation from any current or former corporate officer (including any executive officer) who engages in any activity that is in conflict with or adverse to ADP’s interests, including fraud. |
| ✓ | Stock ownership guidelines: We maintain stock ownership guidelines to encourage equity ownership by our executive officers.                                                                                                                                                                                                                                      |

| ✓ 
 ✓ | Limited perquisites: We provide limited perquisites that are viewed as consistent with our overall compensation philosophy.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
 Double                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
 trigger change in control payments: Our Change in Control Severance Plan for                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
 Corporate Officers includes “double-trigger” provisions, such that payments of cash and vesting of equity awards occur                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
 only if termination of employment without cause or with good reason occurs during the two-year period after a change in                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
 control.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|:--|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ✓ | Independence of our compensation and management development committee and advisor: The compensation and management development committee of our board of directors, which is comprised solely of independent directors, utilizes the services of FW Cook as an independent compensation consultant. FW Cook reports to the committee, does not perform any other services for the company other than in connection with an annual review of competitive director compensation for the nominating/corporate governance committee of our board of directors, and has no economic or other ties to the company or the management team that could compromise their independence and objectivity. |

| xi | |  Automatic Data Processing, Inc. – Proxy Statement |

| 2025 Proxy Statement Summary |

| What we do |

| ✓ | Equity plan best practices: Our 2018 Omnibus Award Plan, approved by stockholders in November 2018, incorporates certain governance best practices, including a minimum vesting period of one-year (with certain limited exceptions), a minimum 100% fair market value exercise price (except for substitute awards from an acquired or merged company), no “liberal share recycling” of stock options or stock appreciation rights and no “liberal” change in control definition. |

| ✓ | Stockholder engagement: As described below under “Fiscal Year 2025 Stockholder Engagement,” our investor engagement program promotes an active dialogue with our largest stockholders on a range of topics related to our strategy,