Company: ADP
Filing Date: 2025-09-25
Form Type: DEF 14A
Source: 0001308179-25-000607
Chunk: 47

Company: AUTOMATIC DATA PROCESSING INC
Filing Date: 2025-09-25
Form: DEF 14A
Chunk 47
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 that our compensation programs reflect principles of good governance.

| What we do |

| ✓ | Pay for performance: We design our compensation programs to link pay to performance and levels of responsibility, to encourage our executive officers to remain focused on both the short-term and long-term financial, client satisfaction, transformation, paperless and HCM goals of the company and to link executive performance to stockholder value.                                                                                                                                                                                                                |
| ✓ | Annual say-on-pay vote: We hold an advisory say-on-pay vote to approve our NEO compensation on an annual basis.                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| ✓ | 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 ADP’s interests, including fraud.                                                                                                                                                                                                           |
| ✓ | Stock ownership guidelines: We maintain stock ownership guidelines to encourage equity ownership by our executive officers. The stock ownership guideline for Ms. Black is six times base salary. The other NEOs have a stock ownership guideline of three times base salary. Executive officers whose ownership levels are below target ownership levels are required to retain as shares of common stock at least 75% of post-tax net gains on stock option exercises, and 75% of shares (net of taxes) received upon vesting of RSUs or received under our PSU program. |
| ✓ | Limited perquisites: We provide limited perquisites that are viewed as consistent with our overall compensation philosophy.                                                                                                                                                                                                                                                                                                                                                                                                                                                |

| ✓ | Double trigger change in control payments: Our Change in Control Severance Plan for Corporate Officers includes “double-trigger” provisions, such that payments of cash and vesting of equity awards occur only if termination of employment without cause or with good reason occurs during the two-year period after a change in control.                                                                                                                                                                                                                                                                                                                                                  |
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| ✓ | Independence of our compensation and management development committee and advisor: The compensation and management development committee of our board of directors, which is comprised solely of independent directors, utilizes the services of FW Cook as an independent compensation consultant. FW Cook reports to the committee, does not perform any other services for the company other than in connection with an annual review of competitive director compensation for the nominating/corporate governance committee of our board of directors, and has no economic or other ties to the company or the management team that could compromise their independence