Company: ADP
Filing Date: 2025-09-25
Form Type: DEF 14A
Source: 0001308179-25-000607
Chunk: 97

Company: AUTOMATIC DATA PROCESSING INC
Filing Date: 2025-09-25
Form: DEF 14A
Chunk 97
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: Fair Value as of Vesting Date of Equity Awards Granted and Vested in the Year                         |     |   $3,916,762 |     |         $1,471,742 |
| Add: Year over Year Change in Fair Value of Equity Awards Granted in Prior Years that Vested in the Year   |     |   $2,965,939 |     |         $1,234,263 |
| Deduct: Fair Value at the End of the Prior Year of Equity Awards that Failed to Meet Vesting Conditions in 
 the Year                                                                                                   |     |           $0 |     |                 $0 |
| Add: Value of Dividends Paid on Stock Awards not Otherwise Reflected in Fair Value or Total Compensation   |     |     $833,526 |     |           $252,033 |
| Add: Aggregate of defined benefit and actuarial pension plan service cost and prior service cost           |     |           $0 |     |                 $0 |
| End: Compensation Actually Paid                                                                            |     |  $31,938,998 |     |        $12,210,427 |

Financial Performance Measures Tabular List

The following table lists the financial performance measures, on an unranked basis, that we believe are most important in linking compensation actually paid to company performance for the most recently completed fiscal year.

| Measure                      
 / Metric                     |     | Compensation              
 Program                   |
| Revenue Growth               |     | Annual Cash Bonus         |
| New Business Bookings Growth |     | Annual Cash Bonus         |
| Adjusted EBIT Growth(1)      |     | Annual Cash Bonus         |
| Adjusted Net Income Growth   |     | Long-term Incentive (PSU) |
| Revenue ex-ZMPT Growth(2)    |     | Long-term Incentive (PSU) |

| 1 | 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. |
| 2 | Our revenue ex-ZMPT measure is a consolidated revenue growth measure that excludes the impact of zero-margin benefits pass-throughs. Importantly