Robert Schrader
Chief Financial Officer at PAYX
Executive
About Robert L. Schrader
Senior Vice President and Chief Financial Officer of Paychex since October 13, 2023 (age 51 at appointment), Schrader is a CPA with an MBA from the University of Rochester (Simon) and a BS from SUNY Brockport, and previously held finance leadership roles at Unither Manufacturing, Bausch & Lomb, and PricewaterhouseCoopers . He joined Paychex in December 2014 and progressed through Internal Audit, FP&A, Controller, and VP Finance & Investor Relations before being appointed CFO; under his tenure in fiscal 2025, Paychex delivered service revenue of $5.4B (+5%), operating income of $2.2B (+2%), adjusted diluted EPS of $4.98 (+6%), and 5-year TSR of 151% .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Paychex, Inc. | VP, Finance & Investor Relations | Jan 2023–Oct 2023 | Prepared succession; led investor communications |
| Paychex, Inc. | VP & Controller; Sr. Director FP&A; Director Internal Audit | Dec 2014–Jan 2023 | Built finance controls, planning rigor, and audit oversight |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Unither Manufacturing, LLC | Chief Financial Officer | Not disclosed | Led finance at manufacturing firm |
| Bausch & Lomb, Inc. | Finance leadership culminating VP Finance & Controller, Global Quality & Operations | 10 years | Operational finance leadership across global quality and operations |
| PricewaterhouseCoopers LLP | Audit Manager | Not disclosed | Public accounting, audit expertise |
Fixed Compensation
| Metric | FY 2024 | FY 2025 |
|---|---|---|
| Base Salary (paid, $) | 414,904 | 493,654 |
| Annualized Base Salary as of May 31 (target, $) | — | 500,000 |
| All Other Compensation (401(k) match, $) | 15,123 | 14,646 |
Notes:
- Fiscal 2025 base salary increased ~11% to $500,000 to align closer to peer median while still below it .
Performance Compensation
Annual Incentive Program (FY 2025 – CFO structure and outcomes)
| Metric | Weight at Target | Target Definition | Actual Achievement | Payout (% of base) | Vesting/Payment |
|---|---|---|---|---|---|
| Service Revenue | 30.0% | YoY growth; plan dollars 100.0% at target | 100.0% of target | 30.0% | Cash paid July 2025 |
| Operating Income, net of certain items | 35.0% | YoY growth; plan dollars 100.0% at target | 99.3% of target | 31.5% | Cash paid July 2025 |
| Annualized New Business Revenue | 25.0% | YoY growth; plan dollars 100.0% at target | Below threshold (0.0%) | 0.0% | Cash paid July 2025 |
| Qualitative Goals | Max 10.0% | Individual-specific | Committee-awarded 10.0% | 10.0% | Cash paid July 2025 |
| Total | 100.0% | — | — | 71.5% | — |
Schrader’s FY 2025 incentive earned: 71.5% of $500,000 = $357,500 .
Equity Awards Granted (FY 2025 grant cycle – July 15, 2024)
| Award Type | Grant Date | Shares/Units | Strike/Fair Value | Vesting |
|---|---|---|---|---|
| Performance-Based RSUs (at target) | Jul 15, 2024 | 9,866 | $119.70 per PSU (Monte Carlo) | 3-year performance (service revenue & operating income, rTSR ±25%) |
| Stock Options | Jul 15, 2024 | 18,322 | $121.63 strike; $27.29 fair value (Black-Scholes) | 1/3 per year over 3 years; 10-year term |
| Time-Based RSUs | Jul 15, 2024 | 2,466 | $121.63 per RSU | 1/3 per year over 3 years |
Program design changes: For CEO and CFO, performance-based equity increased to 60% of total equity target, performance period extended to 3 years, and added relative TSR modifier to further align with shareholder outcomes .
Prior Performance Awards: 2023–2025 PSU Outcomes (company level)
| Metric | Two-Year Target ($mm) | Actual ($mm) | Achievement vs Target | Payout |
|---|---|---|---|---|
| Service Revenue | 10,747 (target) | 10,542 | 98% | 84% of target (before one-year restriction) |
| Operating Income, net of certain items | 4,318 (target) | 4,228 | 98% | 84% of target (before one-year restriction) |
General vesting terms: 2013–2024 PSU cycles include an additional one-year service period after performance determination; FY 2025 grants use a three-year performance period with rTSR modifier .
Equity Ownership & Alignment
| Ownership Component | Amount |
|---|---|
| Shares owned (beneficial) | 9,955 |
| RSUs vesting by Sep 29, 2025 | — |
| Options exercisable by Sep 29, 2025 | 46,721 |
| Total beneficially owned | 56,676 (<1% of class) |
| Options outstanding – total potential current value | $3,297,018 (valued at $157.91 close on May 30, 2025) |
| Unvested time-based stock awards (shares; value) | 12,091; $1,909,290 (at $157.91) |
| Unearned PSUs at target (shares; value) | 9,866; $1,557,940 (at $157.91) |
Vesting pipelines:
- Options scheduled to vest: FY 2026: 13,030; FY 2027: 10,469; FY 2028: 6,108 .
- Stock awards scheduled to vest: FY 2026: 5,334; FY 2027: 5,935; FY 2028: 822 .
Ownership alignment policies:
- Stock ownership guideline for SVPs: 3× base salary; all NEOs are compliant .
- Hedging and pledging of company stock prohibited for directors and officers .
Insider activity indicators:
- FY 2025 option exercises: 13,015 shares (grant 7/10/2019) with $740,449 value realized .
- FY 2025 stock awards vested: 4,208 ($511,819); 406 ($49,382); 441 ($53,639); 226 ($32,160) .
Employment Terms
| Term | Key Provision |
|---|---|
| Employment Agreements | None; NEOs are at will . |
| Change-in-Control Plan (double-trigger) | Multiple of base salary + target bonus (CFO: 1.5×), prorated target bonus, immediate vesting of time-based equity, pro-rated vesting of performance equity, and benefits continuation; no tax gross-ups . |
| Potential payout on CIC termination (illustrative) | Total: $6,108,008; Base: $750,000; Target bonus: $750,000; Options: $1,105,981; Time-based stock: $1,909,290; PSUs (target): $1,557,940; Benefits: $34,797 . |
| Clawback policy | Adopted Oct 11, 2023; recovers excess incentive-based compensation upon accounting restatements per SEC/Nasdaq rules . |
| Non-compete/forfeiture | Post-termination restrictive covenants; company may cancel outstanding equity and recoup prior gains on violation . |
| Insider trading windows | Trading allowed in open windows; event-specific blackouts possible . |
| Deferred compensation | CFO not participating in non-qualified plan in FY 2025 . |
Compensation Structure and Peer Context
- Pay mix emphasizes performance: for CFO, 60% of equity value is performance-based PSUs; annual cash incentive based on service revenue, operating income (net of certain items), and new business revenue .
- FY 2025 compensation (Schrader): Salary $493,654; Stock awards $1,480,900; Option awards $500,007; Non-equity incentive $357,500; All other comp $14,646; Total $2,846,707 .
- Peer group used for benchmarking includes ADP, Intuit, Fiserv, Equifax, TransUnion, Gartner, Jack Henry, Broadridge, WEX, Verisk, SS&C, Global Payments, Euronet, Corpay, Moody’s, Fair Isaac .
- Say-on-pay support: ~95% approval at 2024 Annual Meeting .
Company Performance Context (FY 2025)
| Metric | FY 2025 |
|---|---|
| Service Revenue ($B) | 5.4; +5% YoY |
| Operating Income ($B) | 2.2; +2% YoY |
| Adjusted Diluted EPS ($) | 4.98; +6% YoY |
| Diluted EPS ($) | 4.58; -2% YoY |
| 5-year TSR | 151% (May 31, 2020–May 31, 2025) |
Investment Implications
- Pay-for-performance alignment is strong: 82% variable pay for NEOs on average and 60% of CFO’s equity tied to 3-year financial goals with an rTSR modifier; annual incentive outcomes tracked closely to plan (service revenue 100%, operating income 99.3%, new business below threshold), signaling disciplined target-setting and payout governance .
- Insider selling pressure: CFO realized ~$0.74M from FY 2025 option exercises and has meaningful scheduled vesting (options: 13,030 in FY26; 10,469 in FY27; 6,108 in FY28; stock awards: 5,334 in FY26; 5,935 in FY27; 822 in FY28), creating potential periodic liquidity events within trading windows .
- Retention risk mitigants: Double-trigger CIC plan with 1.5× cash multiple, accelerated equity vesting terms, non-compete/forfeiture provisions, clawback policy, and strict anti-hedging/pledging policies reduce misalignment and discourage opportunistic exits .
- Ownership alignment: Compliant with 3× salary ownership guidelines; significant unvested equity and PSU exposure aligns the CFO with shareholders’ multi-year outcomes, including rTSR .