Company: ADP
Filing Date: 2025-09-25
Form Type: DEF 14A
Source: 0001308179-25-000607
Chunk: 86

Company: AUTOMATIC DATA PROCESSING INC
Filing Date: 2025-09-25
Form: DEF 14A
Chunk 86
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| 83 | |  Automatic Data Processing, Inc. – Proxy Statement |

| Potential Payments to Named Executive Officers Upon Termination or Change in Control |

|   | substantially the same proportions as their ownership of the company voting securities immediately prior to the transaction; or                                                                                                                                                                                                                                                                                                                                     |
| ● | there occurs the sale of all or substantially all of the company’s assets, other than a sale immediately following which the stockholders of the company immediately prior to the sale are the beneficial owners of securities of the purchasing entity representing more than 60% of the voting power in the purchasing entity, in substantially the same proportions as their ownership of the company voting securities immediately prior to the sale of assets. |

The company will reduce payments under the change in control plan to avoid the application of excise taxes pursuant to Section 4999 of the Internal Revenue Code, unless the after-tax amount to be received by a participant without such a reduction would be greater than the after-tax amount that would be received after such reduction. All payments under the plan are conditioned upon the participant’s execution of a release of claims in favor of the company.

| Corporate Officer Severance Plan |

Effective May 6, 2015, ADP adopted the Corporate Officer Severance Plan for purposes of involuntary terminations other than for cause in the absence of a change in control. All NEOs participate in the severance plan. As of June 30, 2025, there were 29 eligible participants in the severance plan. The severance plan provides that a participant who is involuntarily terminated by the company without cause (other than during the two-year period following the occurrence of a change in control) will receive:

| ● | 18 (or in the case of the CEO, 24) months of continued base salary;                                                                                                                                                                                                                                                                                                             |
| ● | A prorated annual bonus for the year of termination, based on actual performance for the full fiscal year, but assuming that any non-financial and other subjective and qualitative performance criteria are achieved at a level equal to the weighted-average percentage achievement of all applicable financial and other objective and non-qualitative performance criteria; |
| ● | Continued vesting of his or her stock options and time-vested restricted stock and restricted stock unit awards during the period of continued base salary payments (the “Severance Period”); and                                                                                                                                                                               |
| ● | The number of shares of stock (or cash, in the case of cash-settled awards) that the participant would have