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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."
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