ADP Comments on Glass Lewis Recommendation

ROSELAND, NJ--(Marketwired - Oct 23, 2017) -  ADP (NASDAQ: ADP) today issued the following statement in response to a report by Glass Lewis & Co. ("Glass Lewis") regarding the election of directors to ADP's Board of Directors at the Company's 2017 Annual Meeting of Stockholders, to be held on November 7, 2017. ADP strongly disagrees with Glass Lewis' recommendation, which does not reflect the Company's strong track record of delivering value to shareholders or the deep experience and complementary skill sets of its 10 incumbent Directors. ADP urges all stockholders to vote "FOR" ADP's 10 director nominees on the WHITE proxy card today.

"We strongly disagree with Glass Lewis' recommendation, which does not take into account the significant business risk inherent in Pershing Square's margin expansion target nor the negative impact it would have on client retention and ADP's overall business. After thoroughly reviewing Pershing Square's nominees' credentials, ADP's Board determined that none has relevant technology or Human Capital Management experience and all lack skills and experience that would be additive to our Board."

"Glass Lewis fails to recognize ADP's outstanding track record of outperformance relative to our peers and the broader market, the strategic investments ADP has made to develop new, innovative technology and services, and the stewardship and strength of our Board."

• ADP's Total Shareholder Returns (TSR) have consistently outperformed the S&P 500 Index for all relevant time periods.
• ADP has increased the cash dividend paid to stockholders every year for the past 42 consecutive years and returned $11.3 billion in dividends and share repurchases since FY 2011.
• ADP's strategy is driving consistent revenue growth and ongoing margin expansion. Since FY 2012, ADP has achieved compound annual revenue and adjusted EPS growth of 7% and 10% respectively¹.
• Since FY 2011, ADP has increased net operational margins by 580 basis points¹. In addition, ADP's management team and Board have a tangible plan to drive an additional 500 basis points in net operational margin improvement by FY 2020.
• ADP has also maintained annual client retention above 90% for each fiscal year since FY 2011.
• The ADP Board, which has added four new Directors since 2014, has been instrumental in overseeing a track record of strong operational and financial results.
• The Board has overseen a significant transformation of ADP -- we have successfully transitioned 83% of our clients to the cloud without sacrificing the trust, reliability, and customer service that are core to our mission.

"We are disappointed that Glass Lewis failed to acknowledge the lack of relevant experience of Pershing Square's nominees as well as Pershing Square's own failure to grasp the nuances of ADP's business.