Company: PAYX
Filing Date: 2025-08-29
Form Type: DEF 14A
Source: 0001193125-25-191789
Chunk: 47

Company: PAYCHEX INC
Filing Date: 2025-08-29
Form: DEF 14A
Chunk 47
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 payout opportunity to the long-terminvestment experience of our stockholders. If relative TSR performance is at or below the 25th percentile, the final payout is reduced by 25%. If the relative TSR performance is at or above the 75th percentile, the payout is increased by 25%. Payouts are linearly interpolated for relative TSR performance between the 25th and 75th percentiles, with no adjustment applied at the 50th percentile. The relative TSR modifier may not result in a payout in excess of 200% of the target shares. 2023-2025 Performance Stock Awards The two-yearperformance period for performance-based stock awards granted in July 2023 and October 2023 ended on May 31, 2025. For these awards, full vesting is generally provided after an additional one-yearservice period (i.e., total of three years). The shares earned were based on achievement against pre-establishedtargets for the performance period as follows:

| Performance Goal ($ In Millions)          | Threshold | Two-Year Performance Targets Established |   |        |   | Target |     |   |        |   | Maximum |     |   |        |   | ($) | Actual Achievement |   |        |     | % of Target |     |    |   |
|:------------------------------------------|:----------|:-----------------------------------------|:--|-------:|:--|:-------|:----|:--|-------:|:--|:--------|:----|:--|-------:|:--|:----|:-------------------|:--|-------:|:----|:------------|:----|---:|:--|
| Service revenue(1)                        |           |                                          | $ | 10,210 |   |        |     | $ | 10,747 |   |         |     | $ | 11,070 |   |     |                    | $ | 10,542 |     |             |     | 98 | % |
| Operating income, net of certain items(2) |           |                                          | $ |  4,102 |   |        |     | $ |  4,318 |   |         |     | $ |  4,447 |   |     |                    | $ |  4,228 |     |             |     | 98 | % |
| Percent of plan                           |           |                                          |   |     95 | % |        |     |   |