Company: PAYX
Filing Date: 2025-08-29
Form Type: DEF 14A
Source: 0001193125-25-191789
Chunk: 42

Company: PAYCHEX INC
Filing Date: 2025-08-29
Form: DEF 14A
Chunk 42
---
.0 | % |     |        |     | 4.0 | % |     |         |     | 7.2 | % |     |                   |     | 98.1 | % |     |        |     | 100.0 | % |     |         |     | 103.1 | % |     |             |     |   0.0 | %(4) |

| (1) | The annual incentive program allows for certain adjustments to metrics as reported in our consolidated financial statements. The acquisition component of service revenue is included up to a maximum of 2% of service revenue at target. |

| (2) | Operating income, net of certain items, is a non-GAAP measure. Refer to “Paychex, Inc. Non-GAAP Financial Measures” in Appendix A for a discussion of this non-GAAP measure and a reconciliation to the most comparable GAAP measure of operating income. |

| (3) | Annualized new business revenue is the approximate amount of revenue to be earned over the first 12-month period, from the sale in the current fiscal year, of certain management solutions; and professional employer organization and insurance solutions to new clients and new product sales to existing clients. This measure is not directly calculated from our audited financial statements, as reported service revenue also includes recurring revenue from pre-existing clients. This metric is set to provide incentive for executives to strive to exceed the target, given the relationship to recurring revenue. |

| (4) | Achievement for annualized new business revenue was below threshold attainment for fiscal 2025. Therefore, there was no payout related to this metric under the annual incentive program. |

Each metric is assigned a different weighting on an individual basis, depending on the position and role of the particular NEO. Each performance objective, along with the target percentage of base salary that can be earned for that metric, and the actual payout percentage is set forth below for our NEOs (excluding Mr. Ante, who joined the Company in April 2025), in accordance with calculations per the program:

|                                           |     | Mr. Gibson |     |       |   |     |             |     |       |   |     | Mr. Bottini |     |       |   |     |             |     |      |   |     | Messrs. Schrader and Gioja |     |       |   |     |             |     |      |   |
| Bonus Objectives                          |     | % of Base  
 Salary