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Posted 14 September, 2021

AUTOMATIC DATA PROCESSING INC appointed Don McGuire as new CEO

Nasdaq:ADP appointed new Chief Executive Officer Don McGuire in a 8-K filed on 14 September, 2021.


  Effective as of October 1, 2021, the Company has appointed Don McGuire to succeed Ms. Winters to the position of Corporate Vice President and Chief Financial Officer reporting to the Chief Executive Officer.  

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Overview of AUTOMATIC DATA PROCESSING INC
Business/Consumer Services • Diversified Business Services
Automatic Data Processing, Inc. engages in the provision of business outsourcing solutions in cloud-based human capital management. It operates through the following business segments: Employer Services, Professional Employer Organization Services, and Other. The Employer Services segment provides clients from single-employee small businesses to large enterprises offering human resources outsourcing and technology-based human capital management solutions and cloud-based platforms. The Professional Employer Organization Services segment offers small and mid-sized businesses a human resource outsourcing solution through a co-employment mode. The Other segment includes the certain corporate overhead charges and expenses that have not been allocated to the reportable segments. The company was founded by Henry Taub in 1949 and is headquartered in Roseland, NJ.
Market Cap
$101B
View Company Details
AUTOMATIC DATA PROCESSING INC by TradingView
Relevant filing section
Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. 


On September 13, 2021, Kathleen A. Winters, Corporate Vice President and Chief Financial Officer of Automatic Data Processing, Inc. (the "Company"), notified the Company of her decision to retire from the Company, effective as of September 30, 2021. Effective as of October 1, 2021, the Company has appointed Don McGuire to succeed Ms. Winters to the position of Corporate Vice President and Chief Financial Officer reporting to the Chief Executive Officer.


Mr. McGuire, age 61, has been the Company's President, Employer Services International since June 2018. Prior to his appointment as President, Employer Services International, Mr. McGuire held multiple senior leadership roles in key geographies around the globe, including as President, Global Enterprise Solutions EMEA/Streamline from July 2016 to June 2018, as Senior Vice President, General Manager, Asia Pacific Region from December 2012 to June 2016, and as General Manager, ADP United Kingdom/Ireland from September 2007 to December 2012. Mr. McGuire joined the Company in 1998 as Vice President, Finance, ADP Canada and served in various positions of increasing responsibility, including as the Chief Financial Officer for ADP Canada.

The Company is providing Mr. McGuire the following key compensation and benefits:


· An annual base salary of CAD $823,515, equivalent to approximately $650,000 in USD, based on a current conversion rate (as Mr. McGuire, a Canadian national, receives his cash compensation in Canadian dollars); 


· An annual target bonus of 150% of annual base salary, which will be prorated based on service during the fiscal year, with the payout to be calculated based on performance against a set of objectives under the Company's Annual Cash Bonus Plan for Officers; 


· A one-time, time-based restricted stock award with a grant value of $2,100,000 in USD that will be granted on October 1, 2021, with 50% of the shares vesting on the first anniversary of the grant date and the remaining 50% of the shares vesting on the second anniversary of the grant date; 


· Participation in the long-term incentive compensation program for executives consisting of performance-based stock units ("PSUs") and stock options, with an expected annual total target equity award value of $3,000,000 in USD for fiscal year 2022 reflecting a target PSU award of $1.6 million in USD to be granted on October 1, 2021, incremental to Mr. McGuire's pre-existing equity award of $1.4 million in USD (granted with a mix of 70% PSUs and 30% stock options) made on September 1, 2021 in connection with his prior role; and 


· Subject to localizing Mr. McGuire in the U.S., participation in all of the Company's applicable 401(k), executive retirement, deferred compensation, medical and health, life, accident, disability and other insurance programs, stock purchase and certain other perquisite and benefit programs on the same basis as similarly situated senior executives. 


In addition, in the event of involuntary termination of Mr. McGuire's employment without cause, he is entitled to 18 months of salary continuation, a prorated bonus and continued vesting in unvested equity awards for the 18-month severance period pursuant to the Company's Corporate Officer Severance Plan. Mr. McGuire is also covered by the Company's Change in Control Severance Plan for Corporate Officers, as amended, so that if his employment is terminated either involuntarily without cause or for "good reason," within two years after a change in control, he would be entitled to receive 150% of his total annual compensation as defined in the plan and the accelerated vesting of unvested equity awards. Mr. McGuire is subject to and currently satisfies the Company's stock ownership guidelines, which require him to have an ownership target in Company stock equal to three times base salary. He is also subject to the Company's Clawback Policy.