Company: PAYX
Filing Date: 2025-08-29
Form Type: DEF 14A
Source: 0001193125-25-191789
Chunk: 36

Company: PAYCHEX INC
Filing Date: 2025-08-29
Form: DEF 14A
Chunk 36
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 earnings per share(2)   $4.98   6% increase |

| (1) | TSR assumes a $100 investment in Paychex common stock from May 31, 2020 to May 31, 2025, with dividends reinvested. |

| (2) | Operating income, net of certain items and adjusted diluted earnings per share are not United States (“U.S.”) generally accepted accounting principles (“GAAP”) measures. Refer to “Paychex, Inc. Non-GAAP Financial Measures” in Appendix A of this proxy statement for a discussion of these non-GAAP measures and a reconciliation to the most comparable GAAP measures of operating income and diluted earnings per share. |

Our strategy is to be the digitally driven HR leader, serving as an essential partner to clients by providing them with the technology and advisory services they need for HR, payroll, benefits, and insurance. We believe that successfully executing this strategy will lead to strong, long-term financial performance. In fiscal 2025, we continued to drive growth and enhance our market position by executing on key elements of our strategy. Paychex, Inc. 2025 Proxy Statement •30

| CD&A |

Growing our client base and market share.We operate in a large and growing market, with significant potential to expand within our current target markets. We continue to invest significantly in new demand generation tools, sales tools, and go-to-marketstrategies. During fiscal 2025, our client base grew to approximately 800,000. Client retention improved over the prior year and remained in line with pre-pandemiclevels. Revenue retention remained above pre-pandemiclevels and HR outsourcing worksite employee retention continued to improve and remained at record levels. Increasing product penetration.We offer a full suite of integrated solutions incorporating a unique combination of industry-leading HR technology and HR advisory solutions that set us apart in the industry. We continue to increase penetration across our human capital management (“HCM”) software, HR outsourcing, retirement, and insurance offerings. In particular, we achieved double-digit growth in revenue from our retirement products for fiscal 2025, and we now have over 120,000 retirement clients. HR outsourcing also reflected strong growth in revenue and worksite employees served, which was approximately 2.5 million employees as of May 31, 2025. Driving technology innovation. We continue to invest in our proprietary, award-winning HCM platforms to maximize efficiency and functionality for our clients and their employees. We implemented enhancements to