Company: ADP
Filing Date: 2025-09-25
Form Type: DEF 14A
Source: 0001308179-25-000607
Chunk: 66

Company: AUTOMATIC DATA PROCESSING INC
Filing Date: 2025-09-25
Form: DEF 14A
Chunk 66
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-year period after a change in control. Corporate Officer Severance Plan ADP’s Corporate Officer Severance Plan is for purposes of involuntary terminations other than for cause in the absence of a change in control. This plan is designed to: (i) attract and retain executive officers by providing a level of protection against involuntary job loss, (ii) provide an appropriate level of benefit to enable executive officers to transition to new employment, and (iii) as permitted by applicable law, secure a release and waiver of claims and compliance with restrictive covenants such as non-compete, non-solicitation, etc. Our Corporate Officer Severance Plan is described in more detail below under “Potential Payments To Named Executive Officers Upon Termination or Change in Control.” In the event of a qualifying termination (i.e., an involuntary termination by the company without cause), executive officers are eligible to receive 18 months of base salary continuation (24 months for the chief executive officer), prorated bonus for year of termination, and continuation of vesting of equity awards during the salary continuation period, subject to proration in respect of certain performance-based equity awards. Mr. Ayala experienced a qualifying termination effective March 31, 2025 and, following satisfaction of the eligibility requirements for participation (i.e., execution of a release and waiver of claims and a restrictive covenant agreement), commenced receiving payments and benefits under the Corporate Officer Severance Plan, as further set forth on page 91. Mr. McGuire will experience a qualifying termination effective September 30, 2025 and, subject to satisfaction of the eligibility requirements for participation, is expected to commence receiving payments and benefits under the Corporate Officer Severance Plan in October 2025. The severance formulas we use for executive officers are each designed to provide the level of temporary replacement income we feel is appropriate for that position. Accounting and Tax Considerations We consider accounting and tax implications when we design our equity-based and cash compensation programs and when we make awards or grants. However, the overriding consideration when evaluating the pay level or design component of any portion of our executives’ compensation is the effectiveness of the pay component and the stockholder value that management and the committee believe the pay component reinforces. Accordingly, the committee may award compensation that is not deductible if it is determined to be appropriate and in the best interests of the Company and our stockholders.

| 61 | |  Automatic Data Processing, Inc. – Proxy Statement |

| Compensation Discussion and Analysis |

Clawback Policy We have a rigorous Clawback Policy which exceeds the