Governance and ESG Focus
Compensation - Rigorous Approach
1
2
3
Five Guiding Principles
Emphasize variable, performance-based compensation
to ensure that pay and performance are closely aligned
Rigorous metric selection and goal-setting process to
support ADP's financial and strategic objectives
Pay competitively to attract and retain executives
critical to our long-term success
Commitment to high standards of corporate
4
5
governance and best practices
Thoughtful design to minimize excessive risk-taking
and to ensure high integrity
Compensation Governance
Ensures Alignment with Principles
Robust Clawback Policy applicable to cash and equity incentives
Stock Ownership Guidelines for CEO (6x) & NEOs (3x)
No option repricing
Target pay levels generally benchmarked to median, with variation
based on tenure and experience
➤ Regular peer group analysis (peer group refined for FY2018 to enhance
alignment with ADP strategy)
Double-trigger change-in-control severance and equity vesting
provisions
Limited perquisites
Anti-Hedging and Pledging Policy
No tax-gross ups
No dividends on unearned performance stock
Copyright 2021 ADP, Inc.
17
ADPView entire presentation