AUTOMATIC DATA PROCESSING, INC.
One ADP Boulevard
Roseland, New Jersey 07068
Notice of 2022 Annual Meeting of Stockholders
The 2022 Annual Meeting of Stockholders of Automatic Data Processing, Inc. will take place at 10:00 a.m., Eastern Standard Time on Wednesday, November 9, 2022. The Annual Meeting will be held virtually and stockholders can access the meeting by visiting www.virtualshareholdermeeting.com/ADP2022.
A Notice of Internet Availability of Proxy Materials or the proxy statement for the 2022 Annual Meeting of Stockholders is first being mailed to stockholders on or about Thursday, September 22, 2022.
The purposes of the meeting are to:
- Elect a board of directors;
- Hold an advisory vote on executive compensation;
- Ratify the appointment of Deloitte & Touche LLP as our independent registered public accounting firm for fiscal year 2023;
- Approve an amendment to the Automatic Data Processing, Inc. Amended and Restated Employees' Savings-Stock Purchase Plan to increase by 5,000,000 shares the number of shares of our common stock that may be acquired by employees thereunder; and
- Transact any other business that may properly come before the meeting or any adjournment(s) or postponement(s) thereof.
Only stockholders of record at the close of business on September 12, 2022 are entitled to receive notice of, to attend, and to vote at the 2022 Annual Meeting. If you plan to attend the virtual meeting, please note the registration and log-inprocedures described under "How Can I Participate in the Meeting?" on page 1 of the proxy statement.
A list of the stockholders entitled to vote at the Annual Meeting will be available for inspection during the Annual Meeting at www.virtualshareholdermeeting.com/ADP2022, upon registration and log-in.
Your vote is important, and we urge you to vote whether or not you plan to attend the virtual meeting. The Notice of Internet Availability of Proxy Materials instructs you on how to access our proxy materials and vote via the Internet. If you receive a paper copy of the proxy materials, you may also vote by telephone or by completing, signing, dating and returning the accompanying printed proxy in the enclosed envelope, which requires no postage if mailed in the United States.
By order of the Board of Directors
DOROTHY WISNIOWSKI
Secretary
September 22, 2022
Roseland, New Jersey
TABLE OF CONTENTS | |
Page | |
2022 Proxy Statement Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | i |
Questions and Answers About the Annual Meeting and Voting. . . . . . . . . . . . . | 1 |
Proposal 1 Election of Directors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 7 |
Stockholder Approval Required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 16 |
Corporate Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 17 |
Board Leadership Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 17 |
Board Composition and Director Succession Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 17 |
Director Nomination Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 18 |
Director Orientation and Continuing Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 19 |
Director Overboarding Policy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 19 |
Retirement Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 20 |
Committees of the Board of Directors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 20 |
Audit Committee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 21 |
Nominating/Corporate Governance Committee. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 22 |
Compensation and Management Development Committee. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 23 |
Corporate Development and Technology Advisory Committee. . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 23 |
The Board's Role in Risk Oversight. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 24 |
The Board's Role in Strategy Oversight . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 28 |
The Board's Role in Human Capital Management and Talent Development . . . . . . . . . . . . . . . . . . . | 28 |
Corporate Social Responsibility and Sustainability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 29 |
Communications with All Interested Parties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 30 |
Transactions with Related Persons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 30 |
Availability of Corporate Governance Documents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 31 |
Compensation Committee Interlocks and Insider Participation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 31 |
Compensation of Non-EmployeeDirectors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 32 |
Director Compensation Table For Fiscal Year 2022 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 34 |
Security Ownership of Certain Beneficial Owners and Management . . . . . . . . | 36 |
Equity Compensation Plan Information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 38 |
Proposal 2 Advisory Vote on Executive Compensation. . . . . . . . . . . . . . . . . . . . . . . | 39 |
Stockholder Approval Required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 39 |
Compensation Discussion and Analysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 40 |
Executive Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 40 |
Compensation Principles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 49 |
Cash Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 52 |
Long-Term Incentive Compensation Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 56 |
Other Compensation Components and Considerations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 59 |
Compensation and Management Development Committee Report. . . . . . . . . . | 62 |
Compensation of Executive Officers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 63 |
Summary Compensation Table for Fiscal Year 2022 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 63 |
All Other Compensation for Fiscal Year 2022. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 65 |
Grants of Plan-Based Awards Table for Fiscal Year 2022 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 67 |
Restricted Stock/Performance Stock Units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 68 |
Stock Options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 69 |
Outstanding Equity Awards for Fiscal Year-End 2022 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 70 |
Outstanding Equity Vesting Schedule for Fiscal Year-End 2022. . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 72 |
Option Exercises and Stock Vested Table for Fiscal Year 2022. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 75 |
Pension Benefits for Fiscal Year 2022. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 76 |
Automatic Data Processing, Inc. Pension Retirement Plan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 77 |
Supplemental Officers Retirement Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 77 |
Deferred Compensation Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 78 |
Executive Retirement Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 78 |
Canada Supplementary Excess Retirement Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 79 |
Non-Qualified Deferred Compensation for Fiscal Year 2022. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 80 |
Potential Payments to Named Executive Officers | |
Upon Termination or Change in Control . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 81 |
Change in Control Severance Plan for Corporate Officers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 81 |
Corporate Officer Severance Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 82 |
Health Coverage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 83 |
Deferred Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 83 |
Termination and Change in Control Tables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 83 |
Potential Payments upon Termination or Change in Control for Carlos A. Rodriguez . . . . . . . . . . . . | 84 |
Potential Payments upon Termination or Change in Control for Don McGuire . . . . . . . . . . . . . . . . . | 85 |
Potential Payments upon Termination or Change in Control for Maria Black. . . . . . . . . . . . . . . . . . . | 86 |
Potential Payments upon Termination or Change in Control for John C. Ayala . . . . . . . . . . . . . . . . . | 87 |
Potential Payments upon Termination or Change in Control for Donald Weinstein . . . . . . . . . . . . . . | 88 |
Potential Payments upon Termination or Change in Control for Kathleen A. Winters . . . . . . . . . . . . | 89 |
CEO Pay Ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 90 |
Audit Committee Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 91 |
Independent Registered Public Accounting Firm's Fees . . . . . . . . . . . . . . . . . . . . . . | 93 |
Proposal 3 Appointment of Independent Registered | |
Public Accounting Firm . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 94 |
Stockholder Approval Required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 94 |
Proposal 4 Approval of an Amendment to the Automatic Data Processing, | |
Inc. Amended and Restated Employees' Savings-Stock Purchase Plan . . . . . | 95 |
Stockholder Approval Required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 98 |
Stockholder Proposals and Nominations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 99 |
Electronic Delivery of Future Stockholder Communications . . . . . . . . . . . . . . . . . . | 101 |
Appendix A: Reconciliation of GAAP and Non-GAAP Information . . . . . . . . . . . | A-1 |
Appendix B: Automatic Data Processing, Inc. Amended and | |
Restated Employees' Savings-Stock Purchase Plan . . . . . . . . . . . . . . . . . . . . . . . . | B-1 |
2022 Proxy Statement Summary
Our summary highlights certain information contained elsewhere in the proxy statement and does not contain all of the information that you should consider. You should read the entire proxy statement carefully before voting.
2022 Annual Meeting of Stockholders
Time and Date 10:00 a.m. Eastern Standard Time, November 9, 2022
Live Webcast | www.virtualshareholdermeeting.com/ADP2022 |
Record Date | Stockholders of record at the close of business on September 12, 2022 are entitled to vote at the |
virtual meeting or by proxy. | |
Admission | The Annual Meeting will be a virtual meeting conducted on the following website: |
www.virtualshareholdermeeting.com/ADP2022 | |
To participate in the virtual meeting, you will need the 16-digit control number that is printed in the | |
blue box on your Notice of Internet Availability of Proxy Materials or in the box marked by the arrow | |
on your proxy card (if you received a printed copy of the proxy materials). If your shares are held in | |
the name of a bank, brokerage firm or other nominee, you should follow the instructions provided by | |
them in order to participate in the virtual meeting. We recommend that you log in 15 minutes before | |
the start of the 2022 Annual Meeting to ensure sufficient time to complete the check-in procedures. | |
Proxy Materials | Under rules adopted by the Securities and Exchange Commission ("SEC"), we are furnishing proxy |
materials to our stockholders primarily via the Internet instead of mailing printed copies of those | |
materials to each stockholder. | |
On September 22, 2022, we commenced the mailing to our stockholders of a Notice of Internet | |
Availability of Proxy Materials containing instructions on how to access our proxy materials. Our proxy | |
materials were mailed to those stockholders who have previously asked to receive paper copies. If you | |
would prefer to receive printed proxy materials, please follow the instructions included in the Notice | |
of Internet Availability of Proxy Materials. If you have previously elected to receive our proxy materials | |
electronically, you will continue to receive these materials via e-mail unless you elect otherwise. | |
How to Vote | The Notice of Internet Availability of Proxy Materials instructs you on how to vote through the |
Internet. | |
If you receive a paper copy of the proxy materials, you may also vote your shares by telephone or by | |
completing, signing, dating and returning the accompanying printed proxy in the enclosed envelope, | |
which requires no postage if mailed in the United States. | |
Voting Matters and Board Voting Recommendation
Board | Page Reference For | ||
Proposal | Recommendation | More Detail | |
Proposal 1: | Election of directors | For Each Nominee | 7 |
Proposal 2: | Advisory resolution to approve compensation | For | 39 |
of named executive officers | |||
Proposal 3: | Ratification of Deloitte & Touche LLP as our | For | 94 |
independent registered public accounting firm | |||
for fiscal year 2023 | |||
Proposal 4: | Approve an Amendment to the Employees' | For | 95 |
Savings-Stock Purchase Plan | |||
- | Automatic Data Processing, Inc. - Proxy Statement
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
ADP - Automatic Data Processing Inc. published this content on 17 September 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 September 2022 08:04:02 UTC.