Form 4: ADP CFO Peter Hadley Acquires RSUs, Sells Shares

Automatic Data Processing Inc.'s CFO, Peter J. Hadley, acquired restricted stock units and subsequently sold shares, likely for tax obligations, under a pre-planned trading arrangement.

Summary

• Peter J. Hadley, CFO of Automatic Data Processing Inc. (ADP), reported recent transactions involving the company's common stock.
• On September 1, 2025, Mr. Hadley acquired 4,008 restricted stock units (RSUs) at a price of $0.0000 per unit.
• These RSUs are convertible into common stock on a one-for-one basis and are scheduled to vest ratably over a three-year period.
• On September 2, 2025, Mr. Hadley disposed of 1,248.298 shares of common stock at a price of $304.05 per share.
• Following these transactions, Mr. Hadley's direct beneficial ownership stands at 10,921.058 shares of common stock.
• The reported transactions were conducted pursuant to a Rule 10b5-1(c) pre-planned trading arrangement.

Sentiment

Score: 6

Explanation: This is a routine insider transaction related to executive compensation. The acquisition of RSUs is a positive alignment of interests, while the sale is a common tax-related event, leading to a neutral to slightly positive sentiment.

Positives

• The acquisition of 4,008 restricted stock units aligns the CFO's interests with long-term shareholder value, as these units vest over three years.
• The transactions were executed under a Rule 10b5-1(c) plan, indicating pre-planned and transparent trading activity.

Negatives

• The disposition of 1,248.298 shares reduces the CFO's direct beneficial ownership, although this is a common practice for tax withholding related to equity compensation.

Future Outlook

The acquired restricted stock units are scheduled to vest ratably over a three-year period, indicating future conversion into common stock and continued equity-based compensation for the CFO.

Industry Context

This Form 4 filing details an insider transaction, which is a routine disclosure for executives receiving equity compensation. It does not provide information directly related to broader industry trends or competitive positioning, but rather reflects the company's executive compensation practices.

Corporate Governance

Stakeholder Impact

• Shareholders gain transparency into executive compensation and ownership changes, which can influence perceptions of management alignment and confidence.
• Employees, particularly other executives, may view this as a standard part of the company's equity compensation structure.

Next Steps

• The 4,008 restricted stock units will vest ratably over the next three years, converting into common stock upon vesting.

Key Dates

Recommendation

This Form 4 details routine insider transactions related to executive compensation, specifically the acquisition of restricted stock units and a subsequent sale of shares, likely for tax withholding. Such transactions are generally not indicative of a change in the company's fundamental outlook or the executive's confidence, thus a 'hold' recommendation remains appropriate based solely on this filing.

Keywords

ADP, Automatic Data Processing, Peter J Hadley, CFO, Form 4, Insider Trading, Restricted Stock Units, RSU, Stock Sale, 10b5-1