Company: ADP
Filing Date: 2025-09-25
Form Type: DEF 14A
Source: 0001308179-25-000607
Chunk: 62

Company: AUTOMATIC DATA PROCESSING INC
Filing Date: 2025-09-25
Form: DEF 14A
Chunk 62
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 with PSUs earned.

| Automatic Data Processing, Inc. – Proxy Statement   | | 58 |

| Compensation Discussion and Analysis |

Relative TSR Modifier PSU awards are subject to an rTSR modifier based on performance against the S&P 500 over the full three-year performance period. The S&P 500 was chosen because the index consists of a broad group of companies that represent investors’ alternative capital investment opportunities, thereby aligning the PSU payout opportunity to the long-term investment experience of our stockholders. The rTSR measurement is based on the average of the last twenty trading days ending on the start and end of the three-year period (beginning July 1 and ending June 30). Relative performance against the S&P 500 may adjust the final three-year average payout percentage, based on achievement of adjusted net income growth and revenue ex-ZMPT growth, between 80% and 120%, as shown in the table below. Reflected in the table is the final three-year rTSR modifier performance and achievement applied to the fiscal year 2023 PSU award.

| Relative          
 TSR Performance   
 (Percentile Rank) | Modifier                  
 Adjustment                
 Achieved                  | PSU                           
 Three-Year rTSR Percentile    
 Rank and Modifier Achieved(1) |
| > = 75P           | 120%                      |                               |
| Between 25P – 75P | Interpolated (50P = 100%) | 68.1P; +114.5%                |
| < = 25P           | 80%                       |                               |

The maximum payout opportunity for PSU awards inclusive of the modifier adjustment is capped at 200% of target, however, the payout opportunity is capped at 100% if our company’s absolute three-year TSR is negative. The final rTSR assessment for the awards granted September 2023 and September 2024 will not be completed until June 30, 2026 and June 30, 2027 respectively. Fiscal Year 2023 PSU Award Achievement Based on the aforementioned performance levels of the fiscal year 2023 PSU award, the final award level earned as a percentage of target was 137%, as reflected in the table that follows.

| FY   |     | Financial      
 Metric         
 Weighted       
 Achievement(1) |     | Three-Year  
 Average     
 Financial   
 Achievement |   | Three-      
 Year        
 rTSR        
 Modifier    
 Achievement |   | Final       
 Payout      
 Achievement |
| 2025 |     | 132