Governance and ESG Focus slide image

Governance and ESG Focus

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 FY16-FY19 CEO compensation was below Proxy Peer Median and near the median for FY20 Robust clawback policy allows for cash and stock recovery Emphasizes equity-based compensation to foster commonality of interest between management and shareholders Strategic Objectives at the Core of Executive Compensation Strategic objectives represent 40% of the short-term incentive compensation for our executive officers ■ Important leading indicators of our transformation, creation of long-term value and future success Strategic objectives are measurable and pay out formulaically Simplify Innovate ↑ Adoption/utilization of client ↑ % of clients on Next Gen engagement hub solutions Grow ↑ Improve client retention ↑ Improvement in net promoter scores, improving client experience ↑ Sales from newest products ↑ Improve workforce diversity ↓ Reduce low value contacts per 1 % of revenues on strategic platforms client ↑ Digital Sales Strong Performance Alignment & Shareholder Support Significant Pay at Risk CEO Other NEOS 2050 CEO Pay ($M) 20 15 Cumulative TSR (%) 300% 7% 15% 200% 10 100% 85% 93% 0% FY16 FY17 FY18 FY19 FY20 Say On Pay 96% 93% 97% 94% 90% = Base Salary = Performance-Based (STIP+LTIP) Sources: Institutional Shareholder Services 2020 Report on ADP; ADP 2020 Proxy Statement. Copyright 2021 ADP, Inc. 18 ADP
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