Company: ADP
Filing Date: 2025-09-25
Form Type: DEF 14A
Source: 0001308179-25-000607
Chunk: 63

Company: AUTOMATIC DATA PROCESSING INC
Filing Date: 2025-09-25
Form: DEF 14A
Chunk 63
---
%           |     |             |   |             |   |             |
| 2024 |     | 111%           |     | 120%        | x | 114.5%      | = | 137%        |
| 2023 |     | 117%           |     |             |   |             |   |             |

| 1 | Weighted achievement for each fiscal year is based on 67% adjusted net income performance and 33% revenue ex-ZMPT performance. |

Time-Based Restricted Stock Units For fiscal year 2025, we granted RSUs to our executive officers, which vest ratably over three years, and allow for a portion of our NEOs’ LTI compensation to be more predictable from a realized value perspective, while being directly tied to the stockholder experience. We determine target award ranges based on our annual review of our long-term incentive compensation programs. The committee may, from time to time, grant RSU awards to our executive officers that are outside of the annual grant cycle. These grants assist us in the recruitment, promotion and retention of executive officers and, while used only occasionally, are important in building our leadership team and succession strategy. In fiscal year 2025, none of the NEOs were granted RSUs outside of the annual grant cycle.

| 59 | |  Automatic Data Processing, Inc. – Proxy Statement |

| Compensation Discussion and Analysis |

Other Compensation Components and Considerations In addition to the compensation components discussed above and the opportunity to participate in the same Employees’ Savings-Stock Purchase Plan and health and welfare benefits available to our U.S. associates generally, we offer our executive officers retirement benefits, deferred compensation, limited perquisites, and change in control and severance protection. We believe these additional benefits are fair, competitive, consistent with our overall compensation philosophy and designed to ensure that we can effectively retain our executive officers as well as effectively compete for executive talent. Retirement Benefits All U.S. executive officers can participate in our 401(k) Plan, including our NEOs. Our NEOs, with the exception of Mr. McGuire, also participated in the Pension Retirement Plan, a tax-qualified, defined benefit, cash balance pension plan. The Pension Retirement Plan was closed to new participants as of January 2015 and was frozen as of July 1, 2020. Effective as of July 1, 2020, the matching contribution under our 401(k) Plan for participants impacted by the Pension Retirement Plan freeze was increased