Company: ADP
Filing Date: 2025-09-25
Form Type: DEF 14A
Source: 0001308179-25-000607
Chunk: 58

Company: AUTOMATIC DATA PROCESSING INC
Filing Date: 2025-09-25
Form: DEF 14A
Chunk 58
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 to changes in stockholder value and the degree to which critical operating objectives are attained and supports our talent retention objectives. The committee may also from time to time grant discretionary awards of RSUs to our executive officers. These awards are for special situations to assist us in the recruitment, promotion or retention of executive officers and are not considered in the target allocation of total long-term incentive compensation between annual PSU and RSU awards. In fiscal year 2025, none of the NEOs received a discretionary RSU award. As part of our annual market analysis of compensation data, we compare our long-term equity incentive grant values with competitive levels. We establish target long-term incentive award values and ranges for each executive level and set the midpoints of such ranges at the market median levels. The committee reviews the target award values annually to ensure that the resulting awards remain generally consistent with our median compensation philosophy. Prior to the beginning of each fiscal year, we analyze the target PSU and RSU grant levels to confirm that our desired target long-term incentive compensation values are appropriate in the context of the compensation studies referred to under “Compensation Review and Determination” above. When comparing our desired values to these compensation studies, we look at both equity elements in total. The target long-term incentive mix approved for fiscal year 2025 grants is shown in the following chart:

| 1 | PSUs reflect the entire PSU target award based on the three-year target opportunity. |

| Automatic Data Processing, Inc. – Proxy Statement   | | 56 |

| Compensation Discussion and Analysis |

At its June 2024 meeting, the committee approved target awards of PSUs and RSUs for all NEOs for fiscal year 2025, which were granted in September 2024. The PSU awards (based on the three-year target opportunity) will be earned and issued following the end of the three-year performance period in fiscal year 2027. The PSUs and RSUs granted for fiscal year 2025 are summarized in the table below:

| Named                   
 Executive Officer (NEO) |     |      Target 
   PSU Award |     |        RSU 
      Award |     |       Total |
| Ms. Black               |     | $12,771,000 |     | $4,257,000 |     | $17,028,000 |
| Mr. McGuire             |     |  $4,275,000 |     | $1,425,000 |     |  $5,700,000 |
| Mr. Bonarti