Company: ADP
Filing Date: 2025-09-25
Form Type: DEF 14A
Source: 0001308179-25-000607
Chunk: 5

Company: AUTOMATIC DATA PROCESSING INC
Filing Date: 2025-09-25
Form: DEF 14A
Chunk 5
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 metrics exclude the impact of certain limited items pursuant to predetermined categories of adjustments established by the compensation and management development committee (the “committee”) at the time that targets were set. Annual Cash Bonus Plan. The committee’s determination of incentive compensation under our annual cash bonus plan for our executive officers, including our NEOs, was based on fiscal year 2025 revenue growth, new business bookings growth, and adjusted EBIT growth as well as client satisfaction, transformation, 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.

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

| 2025 Proxy Statement Summary |

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