Company: ADP
Filing Date: 2025-09-25
Form Type: DEF 14A
Source: 0001308179-25-000607
Chunk: 43

Company: AUTOMATIC DATA PROCESSING INC
Filing Date: 2025-09-25
Form: DEF 14A
Chunk 43
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 per share (“EPS”) growth of 10%. Other key business drivers such as new business bookings and client satisfaction (net promoter scores) also reached new record levels and our overall results, together with our focus on sound capital allocation, have served to further strengthen our business model with high levels of recurring revenue, strong operating cash flow, and a solid balance sheet. Our capital deployment priorities remain unchanged – leverage the strength of our model to reinforce our competitive position by, first and foremost, reinvesting in the business. We believe that balancing investments in innovative solutions, client service tools, and distribution is critical to strengthening our market-leading offerings. We supplement these investments through a disciplined approach to M&A. Our focus on delivering top-line revenue growth, while also improving the efficiency and

| Automatic Data Processing, Inc. – Proxy Statement   | | 42 |

| Compensation Discussion and Analysis |

effectiveness of our operations, is complemented by a commitment to return excess cash to stockholders through dividends and disciplined share buybacks. As new technologies and shifting workplace dynamics continuously reshape the way people work, we support every HCM need of our clients whether that client is a small, local business or a large, global enterprise operating around the world. From HR, payroll, time and benefits to HR outsourcing, talent, compliance and retirement, our solutions span the entire employee experience from hire to retire. As we look ahead to fiscal year 2026 and beyond, we are focused on delivering healthy returns to our stockholders through strong revenue growth and margin expansion and we will continue to focus on people, as we leverage our unparalleled data insights and innovative technology to build a world of work that is smarter, easier, and more human. 2025 Incentive Compensation Performance Metrics Our financial performance impacted the compensation of our executive officers in several ways, most notably through our annual cash bonus plan and performance-based stock unit (“PSU”) program. Performance for all metrics, including the client satisfaction, transformation, paperless and HCM objectives under the annual cash bonus plan, are formulaically measured, based on predetermined and objectively quantifiable goals. Targets and results for our financial metrics exclude the impact of certain limited items pursuant to predetermined categories of adjustments established by 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