Q3 Fiscal 2023 Earnings Supplement slide image

Q3 Fiscal 2023 Earnings Supplement

Governance: Responsive to Shareholder Feedback Topics of Discussion ADP Actions Taken Board & Governance Executive Compensation Risk Management Corporate Social Responsibility Copyright © 2023 ADP, Inc. • Board composition, self-assessment, and refreshment process Governance practices and oversight structures (proxy access proactively adopted in Aug 2016) Compensation program and practices, including ADP's increase in focus on performance-based awards in LTI Performance metric selection and weighting, pay mix, and peer group selection Enterprise risk management structure and how the Board oversees the risk assessment process Sustainability efforts and the underlying economic rationale for our ESG initiatives Ongoing Board Refreshment: New Board members joined in May 2019, April 2020, November 2020 and February 2022; Committee chair and membership rotations (November 2018, 2019, 2020 and 2022) Reduced the % of the voting power of the company's outstanding shares required to call of special meeting of shareholders from 33% to 25% (August 2020) New FY'23 LTI design for executives, increasing focus on performance-based awards Compensation peer group refinements for FY'22 and FY'18 Amended the charter of our newly re-named compensation and management development committee to formalize its existing practice to review HCM matters such as workplace culture, engagement and diversity and inclusion (April 2021) Ongoing enhanced risk management disclosures in proxy statement including in the areas of cyber, privacy and HCM Issued fourth CSR report in March 2022 (aligned to SASB and GRI; includes EEO-1 disclosure) Pledged to achieve net zero greenhouse gas emissions by 2050; Introduced an environmental footprint objective into annual executive bonus plan starting with FY'22 (September 2021) and issued short- and medium-term Scope 1 and 2 GHG targets (August 2022) ✓ Announced enhanced financial disclosures at 2018 Investor Day, which began FY'19 18 ADP
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