Company: PAYX
Filing Date: 2025-08-29
Form Type: DEF 14A
Source: 0001193125-25-191789
Chunk: 48

Company: PAYCHEX INC
Filing Date: 2025-08-29
Form: DEF 14A
Chunk 48
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    100 | % |         |     |   |    103 | % |     |                    |   |        |     |             |     |    |   |
| Payout as a percent of target             |           |                                          |   |     60 | % |        |     |   |    100 | % |         |     |   |    150 | % |     |                    |   |        |     |             |     | 84 | % |

| (1) | Service revenue as calculated under the performance share agreement allows for 2% of total service revenue to be delivered from acquisitions during the performance period. Refer to Appendix B for a description of this non-GAAP measure and a reconciliation of service revenue as calculated for the performance period to service revenue reported in our consolidated financial statements. |

| (2) | Operating income, net of certain items, is a non-GAAP measure. Refer to “Paychex, Inc. Non-GAAP Financial Measures” in Appendix A of this proxy statement for a discussion of this non-GAAP measure and a reconciliation to the most comparable GAAP measure of operating income. In addition, this measure as calculated under the performance share agreement excludes the impact of business acquisitions and other unusual items during the performance period. Refer to Appendix B for a description of this non-GAAP measure and a reconciliation of the amount for the performance period to the most comparable GAAP measure of operating income. |

Paychex, Inc. 2025 Proxy Statement •42

| CD&A |

Stock Ownership Guidelines The C&L Committee has established stock ownership guidelines. The requirements for fiscal 2025 are as follows:

| Position              |     | Requirement |                |
| CEO (Mr. Gibson)      |     |             | 6X base salary |
| SVPs (All other NEOs) |     |             | 3X base salary |

There are restrictions on sales of shares acquired from awards until the officer has attained the applicable stock ownership level. The ownership guidelines were established to provide long-term alignment with stockholders’ interests. For the purposes of achieving the ownership guidelines, unvested stock and stock units awarded to the executive officers that do not include performance-vesting metrics are included. All NEOs are currently compliant with the guidelines. Policies and Practices Related to the Grant of Certain Equity Awards Our equity awards, including stock options, are granted in accordance with a predetermined schedule, which coincides with regularly scheduled C&L Committee meetings that are scheduled