8-KLeadership ChangesExhibits & Filings

AUTOMATIC DATA PROCESSING INC 8-K Report, Executive Changes (Nov 13, 2012)

Filed November 13, 2012For Securities:ADP

Summary

This 8-K filing from Automatic Data Processing, Inc. (ADP) reports on the departure of an executive, Christopher R. Reidy, effective January 2, 2013. The company has entered into a Separation Agreement and Release with Mr. Reidy, outlining the terms of his departure. Investors should note the financial implications of this agreement, which include various cash payments and equity-related benefits for Mr. Reidy, totaling a significant amount. The agreement aims to secure Mr. Reidy's cooperation and adherence to post-employment restrictions, including non-competition and non-solicitation clauses, in exchange for these compensation and benefits. The company has also filed the Separation Agreement as an exhibit to this report, providing transparency on the details of this executive transition.

Key Highlights

  • 1Christopher R. Reidy, an officer of Automatic Data Processing, Inc., will depart from the company effective January 2, 2013.
  • 2ADP has entered into a Separation Agreement and Release with Mr. Reidy, detailing the terms of his departure.
  • 3Mr. Reidy will receive a separation payment of $571,200, paid over twelve months.
  • 4A cash payment of $457,000, equivalent to his fiscal year 2013 target bonus, will be provided.
  • 5Mr. Reidy will receive a cash payment for the value of 13,000 shares of ADP common stock.
  • 6Continued vesting for one year for unvested stock options and retention of certain restricted stock are part of the agreement.
  • 7Mr. Reidy agrees to a two-year period of non-competition, non-solicitation, and non-hire covenants, along with confidentiality and non-disparagement obligations.

Frequently Asked Questions

This 8-K filing is primarily to report the departure of executive Christopher R. Reidy and to disclose the terms of his Separation Agreement and Release with Automatic Data Processing, Inc.

Mr. Reidy is set to receive a $571,200 separation payment spread over 12 months, a $457,000 cash payment equal to his FY2013 target bonus, and a cash payment equivalent to the value of 13,000 shares of ADP stock. He also benefits from continued vesting of stock options and retention of certain restricted stock.

Mr. Reidy has agreed to non-competition, non-solicitation, and non-hire covenants for two years following his separation date. He has also agreed to customary confidentiality and non-disparagement covenants.

The financial impact on ADP includes the total cash payments made to Mr. Reidy, the cost of equity compensation related to continued vesting and retention of shares, and the provision of outplacement assistance. The specific total financial outlay is detailed within the Separation Agreement, which is filed as an exhibit.