Q3 Fiscal 2023 Earnings Supplement slide image

Q3 Fiscal 2023 Earnings Supplement

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 CEO compensation was below Proxy Peer Median for FY16 - FY19, near the median for FY20-FY21 and slightly above the median for FY22 Robust clawback policy allows for cash and stock recovery Emphasizes equity-based compensation to foster commonality of interest between management and shareholders Transformation, Client Satisfaction and ESG Objectives Transformation, Client Satisfaction and ESG objectives represent 20%, 10% and 10%, respectively, of the short-term incentive compensation for our executive officers Important leading indicators of our transformation, creation of long-term value and future success These objectives are measurable and pay out formulaically Transformation • Reduce low value contacts per client • Digital sales goal Client count % on Next Gen • % of revenues on strategic platforms • Sales from newest products Client Satisfaction ESG • Increase % of paperless direct Improve % of female executives • Improve client experience through net promotor score goals Client retention goal deposit paystubs • • Improve % of executives from underrepresented groups Strong Performance Alignment & Shareholder Support CEO Pay ($M) Cumulative TSR (%) 225050 300% CEO 6% 200% 15 10 100% 94% 0% FY18 FY19 FY20 FY21 FY22 Say On Pay 97% 94% 90% 82% 93% Sources: Institutional Shareholder Services 2022 Report on ADP; ADP 2022 Proxy Statement. Copyright © 2023 ADP, Inc. Significant Pay at Risk Other NEOS 86% 14% = Base Salary = Performance-Based (STIP+LTIP) 22 22 ADP
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