Company: ADP
Filing Date: 2025-09-25
Form Type: DEF 14A
Source: 0001308179-25-000607
Chunk: 27

Company: AUTOMATIC DATA PROCESSING INC
Filing Date: 2025-09-25
Form: DEF 14A
Chunk 27
---
 Measures. Our incentive plans have diverse performance measures, including company and business unit financial measures, key client satisfaction, 
 transformation, paperless and HCM objectives, and individual goals.                                                                                                   |     | ✓ | Balance. Our compensation programs balance annual and long-term incentive opportunities, cash and equity, and fixed and variable incentives. |

| ✓ | Payout Caps. We cap incentive plan payouts within a reasonable range. |     | ✓ | Mix. The mix of performance-based equity awards and RSUs in our long-term incentive programs serves the best interests of stockholders and the company. |     | ✓ | Stock Ownership Guidelines. Our stock ownership guidelines link the interests of our executive officers to those of our stockholders. |

| ✓ | Clawback Policy. We maintain a rigorous Clawback Policy which exceeds Nasdaq listing requirements and allows for the recovery of both cash and equity incentive compensation from any current or former corporate officer (including any executive officer) who engages in any activity that is in conflict with or adverse to the company’s interests, including fraud. |     | ✓ | Other. We prohibit our directors and all of our employees from engaging in any hedging or similar transactions involving ADP securities, holding ADP securities in a margin account, or pledging ADP securities as collateral for a loan. Transactions in ADP securities by our executive officers are executed through a 10b5-1 program. |

| Automatic Data Processing, Inc. – Proxy Statement | | | 26 |

| Corporate Governance |

Corporate Development and Technology Committee Our corporate development and technology committee oversees risks related to M&A, innovation, technology talent and product security and resiliency. Nominating/Corporate Governance Committee Our nominating/corporate governance committee oversees risks associated with board structure and other corporate governance policies and practices, as well as enterprise risk management and environmental, social and governance policies and programs. The committee also oversees the review and approval of any related-person transactions under our Related Persons Transaction Policy.

| The Board’s Role in Strategy Oversight |

Our directors take an active role in the oversight of the company’s strategy at both a board and committee level, with management responsible for the execution of our business strategy. In addition to regular performance updates to the board and committees, the company convenes a dedicated strategy and product session each year with the board. This ongoing effort enables the board to focus on company performance over the short, medium and long-term horizons, as well as the quality of operations and industry trends.

| ✓ | Annual Operating Plan and Capital Structure