Key Insights

• Automatic Data Processing's Annual General Meeting to take place on 12th of November
• CEO Maria Black's total compensation includes salary of US$1.22m
• The overall pay is comparable to the industry average
• Automatic Data Processing's total shareholder return over the past three years was 13% while its EPS grew by 12% over the past three years

CEO Maria Black has done a decent job of delivering relatively good performance at Automatic Data Processing, Inc. (NASDAQ:ADP) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 12th of November. Here is our take on why we think the CEO compensation looks appropriate.

How Does Total Compensation For Maria Black Compare With Other Companies In The Industry?

According to our data, Automatic Data Processing, Inc. has a market capitalization of US$104b, and paid its CEO total annual compensation worth US$19m over the year to June 2025. Notably, that's an increase of 21% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.2m.

For comparison, other companies in the American Professional Services industry with market capitalizations above US$8.0b, reported a median total CEO compensation of US$15m. This suggests that Automatic Data Processing remunerates its CEO largely in line with the industry average. What's more, Maria Black holds US$11m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2025	2024	Proportion (2025)
Salary	US$1.2m	US$1.2m	6%
Other	US$18m	US$15m	94%
Total Compensation	US$19m	US$16m	100%

On an industry level, roughly 11% of total compensation represents salary and 89% is other remuneration. Automatic Data Processing sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Automatic Data Processing, Inc.'s Growth

Automatic Data Processing, Inc. has seen its earnings per share (EPS) increase by 12% a year over the past three years. In the last year, its revenue is up 7.1%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Automatic Data Processing, Inc. Been A Good Investment?

Automatic Data Processing, Inc. has generated a total shareholder return of 13% over three years, so most shareholders would be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to performance.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.