Company: ADP
Filing Date: 2025-09-25
Form Type: DEF 14A
Source: 0001308179-25-000607
Chunk: 73

Company: AUTOMATIC DATA PROCESSING INC
Filing Date: 2025-09-25
Form: DEF 14A
Chunk 73
---
 Ms. Black and Mr. Kutam, the amount also includes the third of three tranches of the PSU award that was granted in January 2023 (in light of their promotions), which had the same terms and conditions as the PSU award granted in September 2022. For these tranches, the grant date fair value was established in September 2024 and the units earned will be paid out in September 2025. |
| (6) | Consistent with the requirements of ASC Topic 718, the amount represents the second of three tranches of the PSU award that was granted in September 2023 for which the grant date fair value was established in September 2024. This tranche has the same terms and conditions as the PSU award granted in September 2023, and the units earned from this award will be paid out in September 2026.                                                                                                                                                                                                                                                                                                  |
| (7) | Consistent with the requirements of ASC Topic 718, the amount represents the first of three tranches of the PSU award that was granted in September 2024 for which the grant date fair value was established in September 2024. The units earned from this award will be paid out in September 2027.                                                                                                                                                                                                                                                                                                                                                                                                  |
| (8) | Mr. Ayala’s bonus target is prorated to reflect service during fiscal year 2025 through March 31, 2025.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |

| Restricted Stock Units/Performance Stock Units |

We grant restricted stock units under our amended and restated 2018 Omnibus Award Plan (“2018 Omnibus Award Plan”). Restricted stock unit (“RSU”) awards vest over periods determined by our compensation and management development committee (the “committee”). We also grant performance-based stock unit (“PSU”) awards to our senior executives which vest based on financial objectives that are measured over a three-year performance cycle comprised of three one-year performance periods, subject to a relative total shareholder return modifier measured over the full three-year performance cycle. Recipients of RSU awards whose home country is the United States are entitled to receive dividend equivalents, payable in cash, in respect of all unvested RSUs. Recipients of PSU awards receive dividend equivalents with respect to the target number of shares of stock subject to the PSUs, from the grant date of the target award until the issuance date, and assuming all dividend equivalents were reinvested in ADP stock at the time regular dividends are paid. Such reinvested dividend equivalents are distributed only with respect