Investor Presentaiton
Market Commentators Are Skeptical of Ackman's Call for
Radical Margin Increase
"We believe the management team at ADP has done an admirable job in proactively transforming ADP from a legacy
payroll processor to a top HCM provider without sacrificing short-term results."
- J.P. Morgan Research, August 16, 2017*
"Under an optimistic assumption, Ackman's plan would take at least three years of depressed margins, but probably
several more. We doubt management or its investors, including Pershing Square (despite claiming the opposite), would have
the stomach for this... if Pershing Square is only looking at ADP through a spreadsheet, this plan makes perfect sense.
However, companies don't exist on spreadsheets, and even the best laid plans often can't overcome an unhappy
workforce worried about losing their jobs."
-Morningstar Research, August 17, 2017*
"We do believe there are structural differences between ADP and PAYX margins, stemming from ADP's large presence in
the national accounts and mid-market payroll services industry."
- Evercore Research, August 17, 2017*
"ADP's Corporate Governance is a model for other companies... We doubt that many long-term shareholders would be
anxious for a management change following the last six years of outperformance by ADP."
- Baird Research, August 18, 2017*
* Permission to use quotations neither sought nor obtained.
Copyright 2017 ADP, LLC.
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ADP
A more human resource."View entire presentation