Company: PAYX
Filing Date: 2025-08-29
Form Type: DEF 14A
Source: 0001193125-25-191789
Chunk: 43

Company: PAYCHEX INC
Filing Date: 2025-08-29
Form: DEF 14A
Chunk 43
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 |             |     |  8.0 | % |     |                            |     |  10.0 | % |     |             |     | 10.0 | % |
| Total                                     |     |            |     | 150.0 | % |     |             |     | 106.4 | % |     |             |     | 115.0 | % |     |             |     | 55.6 | % |     |                            |     | 100.0 | % |     |             |     | 71.5 | % |

| (1) | If the actual achievement under a given performance metric is between two thresholds (e.g., between threshold and target or between target and maximum), then the percentage of base salary achieved would be calculated based on a straight-line interpolation of the achievement level above threshold or target, as appropriate, for such performance metric. |

| (2) | Operating income, net of certain items, is a non-GAAP measure. Refer to “Paychex, Inc. Non-GAAP Financial Measures” in Appendix A of this proxy statement for a discussion of this non-GAAP measure and a reconciliation to the most comparable GAAP measure of operating income. |

Paychex, Inc. 2025 Proxy Statement •39

| CD&A |

| (3) | Annualized new business revenue is the approximate amount of revenue to be earned over the first 12-month period, from the sale in the current fiscal year, of certain management solutions; and professional employer organization and insurance solutions to new clients and new product sales to existing clients. This measure is not directly calculated from our audited financial statements, as reported service revenue also includes recurring revenue from pre-existing clients. This metric is set to provide incentive for executives to strive to exceed the target, given the relationship to recurring revenue. |

| (4) | The NEOs have an opportunity to earn a percentage of base salary based on individual-specific qualitative goals related to the functions and responsibilities unique to the individual. The C&L Committee may determine, at its sole discretion, whether satisfactory achievement has occurred, regardless of achievement against the pre-established individual goals. |

The actual achievement translated to the incentive payments for our NEOs (excluding Mr. Ante, who joined the Company in April 2025) is as follows:

|                    |     | Annualized 
 Base       
 Salary(1)  |   |         |     | Minimum   
 Potential 
 Payout(2) |