Who is the new CFO of ADP and when does the change take effect?

Peter J. Hadley has been appointed as the new Chief Financial Officer (CFO) of ADP. His appointment is effective July 1, 2025.

What is the compensation package for the new CFO?

The new CFO, Peter J. Hadley, will receive an annual base salary of $650,000, an annual target bonus of 150% of his base salary, and participation in the long-term incentive program with an expected annual target equity award value of $4,875,000 for fiscal year 2026. He will also participate in standard employee benefit programs.

What are the severance provisions for the new CFO?

In the event of involuntary termination without cause, Mr. Hadley is entitled to 18 months of salary continuation, a prorated bonus, and continued vesting of unvested equity awards. He is also covered by the Change in Control Severance Plan, which provides for 150% of his total annual compensation and accelerated vesting of equity awards if his employment is terminated without cause or for good reason within two years after a change in control.

What is the background of Peter J. Hadley?

Peter J. Hadley, age 52, has a long history with ADP, most recently serving as Treasurer since October 2022 and as President, Asia Pacific, from November 2017 through September 2022. He has also held previous CFO roles within the company, including CFO of Global Enterprise Solutions and CFO of Employer Services International.

ADP 8-K: Leadership Changes

Summary

Automatic Data Processing, Inc. (ADP) has announced a significant leadership change in its finance department through an 8-K filing. Peter J. Hadley will be appointed Chief Financial Officer (CFO), effective July 1, 2025, succeeding Don McGuire. Mr. McGuire will transition to a corporate officer role until September 30, 2025, to ensure a smooth handover. Mr. Hadley brings extensive experience within ADP, having held various senior finance and leadership positions, including President of Asia Pacific and Treasurer. This internal promotion suggests continuity in financial strategy and operations. Investors should note the comprehensive compensation package offered to Mr. Hadley, which includes a base salary of $650,000, a target bonus of 150% of base salary, and substantial long-term equity incentives with an expected annual target value of $4,875,000 for fiscal year 2026. The severance provisions, including salary continuation and accelerated vesting upon involuntary termination without cause or in the event of a change in control, provide a degree of executive protection and align executive interests with shareholder value during potential transitions. Mr. Hadley is also subject to stock ownership guidelines and a clawback policy, reinforcing accountability.

Key Highlights

1Peter J. Hadley appointed as the new Chief Financial Officer (CFO) of ADP, effective July 1, 2025.
2Don McGuire will step down as CFO on June 30, 2025, and continue as a corporate officer during a transition period.
3Mr. Hadley possesses a strong internal background with extensive experience in various senior finance and leadership roles within ADP.
4New CFO's compensation includes a $650,000 base salary and a 150% target bonus.
5Significant long-term equity incentive package with an expected annual total target value of $4,875,000 for fiscal year 2026.
6Severance benefits include 18 months of salary continuation and prorated bonus for involuntary termination without cause.
7Mr. Hadley is subject to stock ownership guidelines requiring ownership equivalent to three times his base salary as CFO.

AUTOMATIC DATA PROCESSING INC 8-K Report, Executive Changes (Apr 30, 2025)

Summary

Key Highlights

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