Investor Presentaiton
Close Alignment of Pay, Performance and Achievement
of Strategic Objectives
·
$15
Balanced, Performance-Based Compensation Policy
Designed to incentivize sustainable value creation
•
Thoughtful design to encourage strategic transformation while
mitigating excessive risk-taking
Approved by independent compensation committee using
independent compensation consultant
FY16 and FY17 CEO compensation was below Proxy Peer
Median
Robust clawback policy allows for cash and stock recovery
Emphasizes equity-based compensation to foster
commonality of interest between management and
shareholders
Strong Performance Alignment & Shareholder Support
CEO Pay ($M)
Strategic Objectives at the Core of Executive Compensation
Strategic objectives represent 40% of the short-term incentive compensation for
our executive officers versus peers at 11% (1)
Important leading indicators of our transformation, creation of long-term value
and future success
Strategic objectives are measurable and pay out formulaically
Simplify
↑ Percentage of clients and
revenues on strategic
platforms
↓ Number of US non-sales
locations
↓ Service and implementation
tools to minimize service
complexity
200 %
CEO
Cumulative TSR (%)
Innovate
↑
R&D and innovation
spending
↓ Number of low value
service client contacts
Achieve technology strategy
goals and deploy key new
platforms
Significant Pay at Risk
Grow
Achieve client growth goal
Demonstrate improvement
in net promoter scores,
improving client experience
Continue focus on human
capital by maintaining
favorable engagement
score
Improve workforce diversity
Other NEOS
$10
$5
10%
100 %
$0
0%
FY13
FY14
FY15
FY16
FY17
90%
Say On Pay
97%
96 %
97%
96 %
N/A(2)
=
Base Salary
Sources: Institutional Shareholder Services, ADP 2017 Proxy Statement
Notes:
1.
2.
11% weighting reflects "non-financial" goals of peers; only 3 peers include "strategic❞ metrics at all.
Available on November 7th
Copyright 2017 ADP, LLC.
43
77%
23%
= Performance-Based
(STIP +LTIP)
ADP
A more human resource."View entire presentation