Company: ADP
Filing Date: 2025-09-25
Form Type: DEF 14A
Source: 0001308179-25-000607
Chunk: 48

Company: AUTOMATIC DATA PROCESSING INC
Filing Date: 2025-09-25
Form: DEF 14A
Chunk 48
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 and objectivity. |
| ✓ | Equity plan best practices: Our 2018 Omnibus Award Plan, approved by stockholders in November 2018, incorporates certain governance best practices, including a minimum vesting period of one-year (with certain limited exceptions), a minimum 100% fair market value exercise price (except for substitute awards from an acquired or merged company), no “liberal share recycling” of stock options or stock appreciation rights and no “liberal” change in control definition.                                                                                                                                                                                                           |
| ✓ | Stockholder engagement: As described under “Fiscal Year 2025 Stockholder Engagement” on page xiv of this proxy statement, our investor engagement program promotes an active dialogue with our largest stockholders on a range of topics related to our strategy, corporate governance and executive compensation programs.                                                                                                                                                                                                                                                                                                                                                                  |

| 47 | |  Automatic Data Processing, Inc. – Proxy Statement |

| Compensation Discussion and Analysis |

| What we don’t do |

| ✗ | No-hedging policy: We prohibit all of our directors and employees, including our executive officers, from engaging in any hedging or similar transactions involving ADP securities.                                                                                                                    |
| ✗ | No-pledging policy: We prohibit all of our directors and employees, including our executive officers, from holding ADP securities in a margin account or pledging ADP securities as collateral for a loan.                                                                                             |
| ✗ | No repricing of underwater stock options without stockholder approval: We may not lower the exercise price of any outstanding stock options or otherwise provide economic value to the holders of underwater stock options in exchange for the forfeiture of such awards without stockholder approval. |

| ✗ | No discount stock options: The exercise price of our stock options is not less than 100% of the fair market value of our common stock on the date of grant.                                                                                                                       |
| ✗ | No IRC Section 280G or 409A tax gross-ups: We do not provide tax gross-ups under our change in control provisions or deferred compensation programs.                                                                                                                              |
| ✗ | No current dividends on unearned PSUs: We do not pay dividends in respect of unearned PSUs; rather, dividend equivalents are accrued over the applicable performance period and are paid only if the units are earned and shares are issued at the end of the performance period. |

Looking Forward For fiscal year 2026, we implemented a change to the annual cash bonus plan to increase the weight of the client retention measure, as we believe it