Who is the new Chief Financial Officer (CFO) for ADP?

Mr. Christopher R. Reidy has been appointed as the new Corporate Vice President and Chief Financial Officer of ADP. He is expected to begin his employment by October 2, 2006.

What is Mr. Reidy's compensation package?

Mr. Reidy's compensation includes an initial annual base salary of $500,000, an annual target bonus of 80% of his base salary, 26,000 shares of time-based restricted stock, 13,000 shares of performance-based restricted stock, and an initial stock option grant of 75,000 shares. He will also participate in standard executive benefits and severance plans.

What is the significance of this executive change for investors?

This filing signals a transition in key financial leadership at ADP. The detailed compensation package for the new CFO, including significant equity incentives, indicates a focus on aligning executive performance with shareholder value. Investors should monitor the performance metrics associated with Mr. Reidy's restricted stock and bonus, as well as his integration into the company.

ADP 8-K: Leadership Changes

Q: Who is handling financial responsibilities until the new CFO starts?

Mr. Dan Sheldon, the Company's Controller, has been appointed as the Principal Accounting Officer and acting Principal Financial Officer. He will serve in this capacity until Mr. Reidy officially joins ADP.

Summary

Automatic Data Processing, Inc. (ADP) filed an 8-K on August 2, 2006, to report a material definitive agreement regarding the hiring of a new Chief Financial Officer (CFO) and related executive appointments. The company has entered into a letter agreement with Mr. Christopher R. Reidy to serve as its Corporate Vice President and Chief Financial Officer, expected to commence employment by October 2, 2006. This appointment signifies a significant transition in ADP's financial leadership. Mr. Reidy's compensation package includes a base salary of $500,000, an annual target bonus of 80% of his base salary, and substantial equity awards, including restricted stock and stock options, aligning his incentives with company performance. Concurrently, Mr. Dan Sheldon has been appointed as the Principal Accounting Officer and acting Principal Financial Officer until Mr. Reidy officially joins, demonstrating a smooth handover of financial responsibilities. This filing is crucial for investors to understand the company's executive strategy and compensation structures for key financial roles.

Key Highlights

1ADP has appointed Mr. Christopher R. Reidy as its new Corporate Vice President and Chief Financial Officer, effective no later than October 2, 2006.
2Mr. Reidy's compensation package includes an initial base salary of $500,000 and a target annual bonus of 80% of his base salary.
3The new CFO will receive significant equity awards, including 26,000 shares of time-based restricted stock and 13,000 shares of performance-based restricted stock.
4Mr. Reidy will also be granted an initial stock option grant of 75,000 shares, with potential for future annual grants.
5Mr. Dan Sheldon has been appointed as Principal Accounting Officer and acting Principal Financial Officer, serving until Mr. Reidy commences his role.
6Mr. Reidy is eligible to participate in ADP's executive benefits, including a Change in Control Severance Plan and various insurance and retirement programs.
7The agreement outlines specific severance terms for Mr. Reidy, providing for two years of salary, bonus, and restricted stock if terminated involuntarily within the first three years of employment.

AUTOMATIC DATA PROCESSING INC 8-K Report, Executive Changes (Aug 2, 2006)

Summary

Key Highlights

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