Global Corporate Social Responsibility Report
Governance - Responsive to Shareholder Feedback
Board &
Governance
•
Executive
Compensation
°
Risk
Management
Corporate Social
Responsibility
•
Topics of Discussion
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 shift
to using Net Income instead of EPS to measure LTIP goals
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
ADP Actions Taken
Compensation peer group refinements for FY'22 and FY'18
Pledge to achieve net zero greenhouse gas emissions by 2050; Introduced an environmental
footprint objective into annual executive bonus plan for FY'22 (September 2021)
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)
Issued third CSR report in November 2020 (aligned to SASB and GRI)
Ongoing Board Refreshment: New Board members joined in April 2018, May 2019, April 2020 and
November 2020; Committee chair and membership rotations (November 2018, 2019 and 2020)
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)
Amended Corporate Governance Principles to adopt more stringent overboarding policy (April
2018)
Shareholder friendly Equity Plan (November 2018)
Approved freeze of corporate officer supplemental retirement plan as of July 1, 2019 (previously
closed to new entrants in FY'14)
Ongoing enhanced risk management disclosures in proxy statement including in the areas of
cyber, privacy and HCM
Announced enhanced financial disclosures at 2018 Investor Day, which began FY'19
Copyright 2021 ADP, Inc.
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