Company: ADP
Filing Date: 2025-09-25
Form Type: DEF 14A
Source: 0001308179-25-000607
Chunk: 44

Company: AUTOMATIC DATA PROCESSING INC
Filing Date: 2025-09-25
Form: DEF 14A
Chunk 44
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, paperless and HCM objectives. These fiscal year 2025 goals were established consistent with the committee’s long-standing methodology in setting such goals and as such, align to the financial earnings guidance the company communicated in July 2024 for fiscal year 2025 and reflect ADP’s expectations and assumptions at that time. Details with regard to non-financial objectives are provided on page 55 and the financial goals and performance results are summarized below. Each bonus measure below is expressed as a percentage-based growth goal, thus requiring correspondingly higher levels of absolute year-over-year performance delivery. For fiscal year 2025, our NEOs received cash bonuses at 107.1% of target.

| Annual Cash Bonus               
 Plan Measures                   |     | Plan    
 Targets |      |     | Plan Results                                                                                                    |
| Revenue Growth                  |     |         | 5.7% |     | 7.1%, excluding the impact of foreign currency fluctuations in excess of the fluctuations assumed in the target |
| New Business Bookings Growth(1) |     |         | 7.8% |     | 3.5%                                                                                                            |
| Adjusted EBIT Growth(2)         |     |         | 8.8% |     | 9.7%, excluding the impact of foreign currency fluctuations in excess of the fluctuations assumed in the target |

| 1 | For fiscal year 2025, our new business bookings definition includes annualized recurring revenues anticipated from sales orders to new and existing clients for Employer Services and Professional Employer Organization (“PEO”) Services. It excludes revenue that is one-time in nature and zero-margin benefits pass-throughs.                                                                                                                                                                                                                                                         |
| 2 | Our adjusted EBIT measure excludes the impact of taxes, certain interest expense, certain interest income, and certain other items. We continue to include the interest income earned on investments associated with our client funds extended investment strategy and interest expense on borrowings related to our client funds extended investment strategy as we believe these amounts to be fundamental to the underlying operations of our business model. Refer to the table in Appendix A for a reconciliation from net earnings to adjusted EBIT for fiscal years 2025 and 2024. |

| 43 | |  Automatic Data Processing, Inc. – Proxy Statement |

| Compensation Discussion and Analysis |

Long-Term Incentive Program . Performance incentive compensation under our PSU program was based on the achievement of adjusted net income growth (67% weight) and revenue excluding zero-margin benefits pass-throughs (“revenue ex