What is the duration of Mr. Rodriguez's employment agreement?

The employment letter agreement for Mr. Carlos Rodriguez is for a three-year term, commencing on November 8, 2011.

What is the compensation package for Mr. Rodriguez?

Mr. Rodriguez will receive an annual base salary of not less than $800,000. He is eligible for performance-based bonuses, with a target of 160% of his base salary. For fiscal year 2012, his target bonus is specifically set at $1,280,000. He will also receive a total stock option grant of 190,000 shares, which will vest over four years.

What are the severance benefits if Mr. Rodriguez's employment is terminated?

If Mr. Rodriguez's employment is terminated for reasons other than 'for cause,' death, disability, or his own resignation, he is entitled to severance benefits. These include an amount equal to 2.6 times his then-current annual base salary, payable over 12 months, and a prorated annual bonus for the fiscal year of termination based on actual performance.

What are the restrictions on Mr. Rodriguez after leaving ADP?

Mr. Rodriguez has agreed to a 24-month non-compete period after his employment ends. He is also restricted from soliciting the Company's clients or prospective clients and from hiring the Company's employees or former employees for a specified period.

ADP 8-K: Leadership Changes

Summary

This 8-K filing from Automatic Data Processing Inc. (ADP) announces the official appointment and employment terms for Mr. Carlos Rodriguez as President and Chief Executive Officer. The agreement, effective November 8, 2011, establishes a three-year term with a base salary of at least $800,000 annually. Mr. Rodriguez is eligible for performance-based bonuses, targeting 160% of his base salary, with a specific target bonus of $1,280,000 for fiscal year 2012. This filing provides clarity on executive compensation and leadership stability for investors.

Key Highlights

1Carlos Rodriguez officially appointed President and CEO for a three-year term starting November 8, 2011.
2Annual base salary set at a minimum of $800,000.
3Eligible for annual performance-based bonus with a target of 160% of base salary.
4Fiscal year 2012 target bonus specifically set at $1,280,000.
5Receiving a significant stock option grant of 190,000 shares (40,000 pre-determined plus 150,000 special grant).
6Stock options will vest ratably over four years.
7Comprehensive severance package detailed, including 2.6 times annual base salary for termination without cause.
8Mr. Rodriguez is subject to non-compete and non-solicitation clauses for a period after employment.

AUTOMATIC DATA PROCESSING INC 8-K Report, Executive Changes (Dec 14, 2011)

Summary

Key Highlights

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