Company: ADP
Filing Date: 2025-09-25
Form Type: DEF 14A
Source: 0001308179-25-000607
Chunk: 59

Company: AUTOMATIC DATA PROCESSING INC
Filing Date: 2025-09-25
Form: DEF 14A
Chunk 59
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 |     |  $3,165,000 |     | $1,055,000 |     |  $4,220,000 |
| Mr. DeSilva             |     |  $3,207,000 |     | $1,069,000 |     |  $4,276,000 |
| Mr. Kutam               |     |  $2,883,300 |     |   $961,100 |     |  $3,844,400 |
| Mr. Ayala               |     |  $3,472,500 |     | $1,157,500 |     |  $4,630,000 |

PSU Awards Our PSU program is based on financial objectives that are measured over a three-year performance period consisting of three one-year performance goals. The committee believes that the current PSU program’s combined effect of (i) measuring performance annually over the three-year performance period enables setting rigorous targets that drive accountability for the achievement of core financial metrics that are critical building blocks for sustained business success and (ii) modifying the actual number of PSUs eligible to be earned based on our three-year rTSR performance, provides the most business-focused, stockholder-aligned and holistic assessment of our long-term trajectory and performance. We believe that the three-year PSU program will further the company’s long-term financial goals by tying a substantial portion of the total compensation opportunity to multi-year performance and better promote talent retention by imposing a meaningful total vesting period. Financial performance metrics for PSU awards are based on (i) adjusted net income as the primary performance metric, weighted 67%, and (ii) revenue ex-ZMPT as the second performance metric, weighted 33%. The combination of the two metrics is intended to promote focus on both the top-line and bottom-line performance of the business. Notably, the PSU revenue metric differs materially from that used in our annual cash bonus plan because it excludes zero-margin benefits pass-throughs and therefore avoids metric duplication. The PSU performance goals and corresponding target award ranges are typically established and communicated to our executive officers (including the NEOs) in the first quarter of each respective fiscal year. After the conclusion of each fiscal year, the committee confirms the performance results and determines the award achieved for such fiscal year, as a percentage of target, based on these results by using linear interpolation between the lower and upper bounds of the applicable percentage range. Under the PSU program, after the end of the three-year performance period, the award levels achieved as a percentage of target