Capital Allocation and Market Strategy
Compensation: Pay Closely Aligned to Performance
Balanced, Performance-Based Compensation Policy
Designed to incentivize sustainable value creation
Thoughtful design to encourage strategic transformation while mitigating excessive risk-
taking
Approved by independent compensation committee using independent compensation
consultant
CEO compensation was below Proxy Peer Median for FY16 - FY19, near the median for
FY20-FY21 and slightly above the median for FY22
Robust clawback policy allows for cash and stock recovery
Emphasizes equity-based compensation to foster commonality of interest between
management and shareholders
Transformation, Client Satisfaction and ESG Objectives
Transformation, Client Satisfaction and ESG objectives represent 20%, 10% and 10%, respectively, of
the short-term incentive compensation for our executive officers
Important leading indicators of our transformation, creation of long-term value and future success
These objectives are measurable and pay out formulaically
Transformation
• Reduce low value contacts per client
• Digital sales goal
Client count % on Next Gen
• % of revenues on strategic platforms
• Sales from newest products
Client Satisfaction
ESG
• Increase % of paperless direct
Improve % of female
executives
• Improve client
experience through net
promotor score goals
Client retention goal
deposit paystubs
•
•
Improve % of executives from
underrepresented groups
Strong Performance Alignment & Shareholder Support
CEO Pay ($M)
Cumulative TSR (%)
225050
300%
CEO
6%
200%
15
10
100%
94%
0%
FY18
FY19
FY20
FY21
FY22
Say On Pay
97%
94%
90%
82%
93%
Sources: Institutional Shareholder Services 2022 Report on ADP; ADP 2022 Proxy Statement.
Copyright © 2023 ADP, Inc.
Significant Pay at Risk
Other NEOS
86%
14%
= Base Salary
= Performance-Based
(STIP+LTIP)
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