Company: ADP
Filing Date: 2025-09-25
Form Type: DEF 14A
Source: 0001308179-25-000607
Chunk: 4

Company: AUTOMATIC DATA PROCESSING INC
Filing Date: 2025-09-25
Form: DEF 14A
Chunk 4
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 to behave in ways that are inconsistent with the company’s strategic planning processes and high ethical standards |

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

| 2025 Proxy Statement Summary |

2025 Compensation Highlights Consistent with our pay for performance philosophy, the compensation of our NEOs is structured with a significant portion of their total compensation at risk and paid based on the performance of the company as a whole. Our financial performance in fiscal year 2025 impacted the compensation for all of our executive officers, not just our NEOs, in several ways, most notably through our annual cash bonus plan and performance-based stock unit (“PSU”) program. Please refer to the “Compensation Discussion and Analysis” section on page 40 of this proxy statement, and the tables and narratives that follow on page 64 of this proxy statement, for more details concerning the compensation of our NEOs.

| Key highlights of our fiscal year 2025 executive compensation program 
 Base salary:                                                          
 Annual cash                                                           
 bonus:                                                                | Our NEOs received salary increases in fiscal year 2025 of 2%. In addition, Mr. DeSilva received a 6.2% salary increase effective January    
 1, 2025 in connection with his appointment as Executive Vice President, North America and Chief of Operations.                              
 Fiscal year 2025 target bonuses were the same as a percentage of base salary as in fiscal year 2024 for all NEOs other than Mr. DeSilva,    
 whose target bonus percentage of 125% reflects a blended percentage for fiscal year 2025 of 100% for the period of July 1, 2024 through     
 December 31, 2024, and 150% effective January 1, 2025. Annual bonuses were based on the financial performance of the company as well as     
 client satisfaction, transformation, paperless and HCM performance goals. For fiscal year 2025, our NEOs received cash bonuses at 107.1%    
 of target.                                                                                                                                  |
|:----------------------------------------------------------------------|:--------------------------------------------------------------------------------------------------------------------------------------------|
| Equity awards:                                                        | As part of our equity compensation program in fiscal year 2025, we granted our executive officers PSUs and restricted stock units (“RSUs”). |

2025 Incentive Compensation Performance Metrics 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