Summary
Automatic Data Processing, Inc. (ADP) announced a significant leadership change in its finance department via an 8-K filing on March 7, 2019. Kathleen A. Winters has been appointed as the new Corporate Vice President and Chief Financial Officer, effective April 15, 2019. Ms. Winters brings extensive financial leadership experience from her previous roles at MSCI Inc. and Honeywell International, Inc. This appointment signals a transition, with the current CFO, Jan Siegmund, stepping down from his role but remaining with the company for a transition period. Investors should note the comprehensive compensation package offered to Ms. Winters, including a substantial base salary, annual bonus target, a significant sign-on bonus, and various equity awards, reflecting the company's investment in new leadership. The details of her severance and change-in-control provisions, as well as stock ownership requirements, provide clarity on executive retention and alignment with shareholder interests.
Key Highlights
- 1Appointment of Kathleen A. Winters as new CFO, effective April 15, 2019.
- 2Jan Siegmund will transition from CFO role but remain with ADP for a defined period.
- 3Ms. Winters has a strong background with previous CFO roles at MSCI Inc. and Honeywell International.
- 4Annual base salary for Ms. Winters set at $650,000.
- 5Potential annual target bonus of 150% of base salary, performance-dependent.
- 6Significant compensation package includes a $1,250,000 cash sign-on bonus and $1,100,000 in restricted stock.
- 7Long-term incentives include performance-based stock units (PSUs) and stock options, with an expected annual target equity award value of $3,000,000.