Company: PAYX
Filing Date: 2025-08-29
Form Type: DEF 14A
Source: 0001193125-25-191789
Chunk: 44

Company: PAYCHEX INC
Filing Date: 2025-08-29
Form: DEF 14A
Chunk 44
---
 of salary increases, start dates, etc. |

| (2) | These columns represent the range of payout that each NEO has the opportunity to earn. The minimum potential payout indicates that no payout is earned if achievement is below threshold. The maximum potential payout is based on the percentage of base salary that each NEO can earn for maximum achievement. |

| (3) | Actual incentive compensation earned is calculated as annualized base salary multiplied by the percentage of base salary achieved and is provided in the Fiscal 2025 Summary Compensation Table of this proxy statement. |

Equity-Based Compensation To align our NEOs’ interests with the long-term interests of our stockholders, we grant equity awards under the 2002 Plan. Annually, the C&L Committee reviews the NEO compensation of our Peer Group to determine the desired pay range for our officers. See the “Compensation Decision Process” section later in this CD&A for further information on the Committee’s process for determining total compensation, including equity awards. This review, along with each officer’s individual performance and potential, determine the total compensation. The quantity of equity awards is based on an estimated total value as determined by the C&L Committee in conjunction with its total compensation review and evaluation. In July 2024, the C&L Committee made an annual equity grant to our NEOs (excluding Mr. Ante who joined the Company in April 2025) that was a blend of stock options, time-based RSUs and performance-based RSUs. The award value was split as follows: Annual Equity Award Value Allocations

| Messrs. Gibson and Schrader: |     | Messrs. Bottini and Gioja: |

Paychex, Inc. 2025 Proxy Statement •40

| CD&A |

This annual distribution provides for a significant portion of the total equity-based compensation value to be performance-based(60% for Messrs. Gibson and Schrader and 50% for Messrs. Bottini and Gioja), consistent with the C&L Committee’s total compensation determination. For our July 2024 annual grants, the C&L Committee determined the estimated total target value to be approximately: $7,000,000 for Mr. Gibson; $2,000,000 for Mr. Schrader; $1,800,000 for Mr. Bottini; and $1,900,000 for Mr. Gioja. The estimated total target value of Messrs. Gibson’s and Schrader’s equity-based compensation was increased in fiscal