Company: ADP
Filing Date: 2025-09-25
Form Type: DEF 14A
Source: 0001308179-25-000607
Chunk: 6

Company: AUTOMATIC DATA PROCESSING INC
Filing Date: 2025-09-25
Form: DEF 14A
Chunk 6
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 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.         |

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-ZMPT”) growth (33% weight) for fiscal year 2025. PSU awards are also subject to a relative total shareholder return (“rTSR”) metric that may modify the final payout (by +/-20%) at the end of the respective full threeyear period based on our performance as compared to the S&P 500. Targets and results exclude the impact of certain limited items pursuant to predetermined categories of adjustments established by the committee at the time the targets were set. For more information on the application of these performance metrics, see “Long-Term Incentive Compensation Programs” on page 56. These financial goals for the PSU awards granted in fiscal year 2025 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. Each PSU measure below is expressed as a percentage-based growth goal, thus requiring correspondingly higher levels of absolute year-over-year performance delivery.

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

| 2025 Proxy Statement Summary |

| PSU Program Measures          |     | Program Targets |     | Program Results                                                                    |
| Adjusted Net Income Growth(1) |     | 7.9%            |     | 10.6%, excluding the impacts of:                                                   |
|                               |     |                 |     | ●Foreign currency fluctuations in excess of the fluctuations assumed in the target 
 ●First-year impact of business acquisitions                                        |
| Revenue ex-ZMPT Growth(2)     |     | 5.6%            |     | 6.2%, excluding the impacts of:                                                    |
|                               |     |                 |     | ●Foreign currency fluctuations in excess of the fluctuations assumed in the target 
 ●First-year impact of business acquisitions                                        |

| 1 | Our adjusted net income measure excludes the impact of certain one-time charges and benefits reflecting specific items that are not fundamental    
 to our underlying business operations.