Company: ADP
Filing Date: 2025-09-25
Form Type: DEF 14A
Source: 0001308179-25-000607
Chunk: 3

Company: AUTOMATIC DATA PROCESSING INC
Filing Date: 2025-09-25
Form: DEF 14A
Chunk 3
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 revenue and earnings growth in fiscal year 2025. This top-line revenue growth, balanced with solid margin performance, drove earnings per share (“EPS”) growth of 10%. Other key business drivers such as new business bookings and client satisfaction (net promoter scores) also reached new record levels and our overall results, together with our focus on sound capital allocation, have served to further strengthen our business model with high levels of recurring revenue, strong operating cash flow, and a solid balance sheet. Our capital deployment priorities remain unchanged – leverage the strength of our model to reinforce our competitive position by, first and foremost, reinvesting in the business. We believe that balancing investments in innovative solutions, client service tools, and distribution is critical to strengthening our market-leading offerings. We supplement these investments through a disciplined approach to M&A. Our focus on delivering top-line revenue growth, while also improving the efficiency and effectiveness of our operations, is complemented by a commitment to return excess cash to stockholders through dividends and disciplined share buybacks. As new technologies and shifting workplace dynamics continuously reshape the way people work, we support every HCM need of our clients whether that client is a small, local business or a large, global enterprise operating around the world. From HR, payroll, time and benefits to HR outsourcing, talent, compliance and retirement, our solutions span the entire employee experience from hire to retire. As we look ahead to fiscal year 2026 and beyond, we are focused on delivering healthy returns to our stockholders through strong revenue growth and margin expansion and we will continue to focus on people, as we leverage our unparalleled data insights and innovative technology to build a world of work that is smarter, easier, and more human. Compensation Principles We believe that compensation should be designed to create a direct link between performance and stockholder value. Five principles that guide our decisions involving executive compensation are that compensation should be:

| 1 | based on (i) the overall performance of the company, (ii) the performance of each executive’s business unit when applicable and (iii) each executive’s individual performance                 |
| 2 | closely aligned with the short-term and long-term financial, client satisfaction, transformation, paperless and HCM objectives that build sustainable long-term stockholder value             |
| 3 | competitive, in order to attract and retain executives critical to our long-term success                                                                                                      |
| 4 | consistent with high standards of corporate governance and best practices                                                                                                                     |
| 5 | designed to dampen the incentive for executives to take excessive risks or