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.
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