Peter J. Hadley
AUTOMATIC DATA PROCESSINGAbout Peter J. Hadley
Peter J. Hadley, age 52, became Chief Financial Officer of ADP effective July 1, 2025 after serving as Corporate Vice President and Treasurer since October 2022, and previously holding senior finance and operating roles across ADP since 2002 . He holds a Master of Applied Finance (FSIA), a Bachelor of Economics (University of Sydney), and is a Chartered Accountant (Australia) . Company performance context during FY2025 included revenue of $20.6B, EPS growth of 10% to $9.98, PSU Year-1 payout factor of 132% on adjusted net income/revenue ex‑ZMPT metrics, and rTSR at the 68.1st percentile leading to a 114.5% rTSR modifier for the FY2023 PSU and a 137% final payout, underscoring pay-for-performance alignment .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| ADP | Corporate Vice President & Treasurer | Oct 2022 – Jun 2025 | Oversaw capital structure, client funds investment portfolio, global funding, capital markets, investor relations, and corporate insurance programs . |
| ADP | President – Asia Pacific | Nov 2017 – Sep 2022 | Led operations, strategy, and business development across APAC; drove international growth initiatives . |
| ADP | CFO, Global Enterprise Solutions | Jul 2014 – Oct 2017 | Senior finance leadership for enterprise solutions . |
| ADP | CFO, Employer Services International | Jul 2012 – Jun 2014 | Senior finance leadership for ESI . |
| ADP | VP Finance, Employer Services International | Jul 2006 – Jun 2012 | Finance leadership for ESI . |
| ADP | Various roles since joining ADP | 2002 – 2006 | Progressive finance roles prior to VP appointment . |
External Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| KPMG (UK) | Audit/Advisory roles | Pre-2002 | Built audit and capital markets skill set in the UK . |
| Arthur Andersen (Australia) | Audit/Advisory roles | Pre-2002 | Developed foundational accounting expertise in Australia . |
Fixed Compensation
| Component | Amount/Detail | Source |
|---|---|---|
| Base salary (CFO) | $650,000 | |
| Target annual bonus | 150% of base salary |
Performance Compensation
CFO Long‑Term Incentive Structure (FY2026 target awards)
| Element | Detail | Source |
|---|---|---|
| LTI vehicles | PSUs and RSUs | |
| Total target equity value (FY2026) | $4,875,000 |
Company Annual Cash Bonus Plan (FY2025 metrics and outcomes)
| Metric | Target | Actual Result | Notes |
|---|---|---|---|
| Revenue Growth | 5.7% | 7.1% (ex-FX above guidance assumptions) | Plan paid at 107.1% of target for NEOs company‑wide . |
| New Business Bookings Growth | 7.8% | 3.5% | As defined (annualized recurring revenues) . |
| Adjusted EBIT Growth | 8.8% | 9.7% (ex-FX above guidance assumptions) | Adjusted per pre‑set categories . |
| Non‑financial metrics | Client satisfaction, transformation, paperless, HCM objectives | Formulaic, pre‑set | Included in plan design . |
PSU Program (FY2025 metrics and outcomes; rTSR overlay)
| Metric | Weight | Target | Actual Result | Payout/Modifier |
|---|---|---|---|---|
| Adjusted Net Income Growth | 67% | 7.9% | 10.6% (ex‑specific items; FX/acquisitions adjustments) | Contributed to 132% Year‑1 payout . |
| Revenue ex‑ZMPT Growth | 33% | 5.6% | 6.2% (ex‑ZMPT; FX/acquisitions adjustments) | Contributed to 132% Year‑1 payout . |
| rTSR vs S&P 500 (FY2023 PSU 3‑yr period) | Modifier | — | 68.1 percentile | +114.5% modifier; FY2023 PSU final payout 137% . |
Equity Ownership & Alignment
| Policy/Item | Detail |
|---|---|
| Stock ownership guideline | CFO required to hold ADP stock equal to 3x base salary . |
| Hedging/Pledging | Hedging and pledging ADP securities prohibited for all directors and employees, including executive officers . |
| Trading mechanics | Executive officer transactions executed through 10b5‑1 programs . |
| Clawback | Rigorous policy exceeding Nasdaq; applies to cash and equity, misconduct, and mandatory restatement situations . |
| Beneficial ownership disclosure | Hadley not a FY2025 NEO/director; individual ownership not presented in the FY2025 table (covers directors/NEOs) . |
Employment Terms
| Term | Detail |
|---|---|
| CFO effective date | July 1, 2025 . |
| Severance (without cause) | 18 months salary continuation, prorated bonus, and continued vesting of unvested equity during the 18‑month severance period under Corporate Officer Severance Plan . |
| Change‑in‑control (CIC) | Double‑trigger; if terminated without cause or for good reason within two years post‑CIC: 150% of total annual compensation and accelerated vesting of unvested equity under CIC Severance Plan for Corporate Officers . |
| Ownership guideline | 3x salary as CFO . |
| Clawback/insider trading | Clawback policy; no hedging or pledging; executive trades via 10b5‑1 . |
Investment Implications
- Pay-for-performance linkage: Cash bonuses and PSUs are formulaic and tied to revenue/new bookings/adjusted EBIT (annual) and adjusted net income and revenue ex‑ZMPT with an rTSR overlay (long‑term), which paid above target in FY2025 (cash 107.1% and PSUs 132%; FY2023 PSU final 137%)—a supportive construct for aligning CFO incentives with durable growth and TSR .
- Retention and severance: Hadley’s severance (18 months + equity vesting continuation) and CIC economics (1.5x total annual comp, double‑trigger) are moderate compared to typical CEO multiples and should mitigate undue turnover risk while limiting parachute inflation .
- Trading/pledging risk controls: Prohibitions on hedging/pledging and use of 10b5‑1 plans reduce discretionary selling and alignment/optics risk; robust clawback adds downside for misconduct or restatements .
- Alignment via ownership: CFO stock ownership guideline of 3x salary enforces skin‑in‑the‑game; individual holdings were not disclosed in the FY2025 proxy as he was not yet an NEO, so monitor future filings for compliance/accumulation trend .
- Execution track record: Long tenure across ADP finance and APAC operations (Treasurer; prior regional president; multiple CFO roles) suggests strong familiarity with client funds, capital markets, and international execution—key to sustaining EPS/net income growth trends highlighted in FY2025 .