Who: Automatic Data Processing, Inc. (Nasdaq: ADP), a global leader in human capital management (HCM) solutions.
What: Appointment of Peter J. Hadley as Chief Financial Officer (CFO), succeeding Don McGuire effective July 1, 2025. Mr. Hadley brings extensive experience within ADP, having served as Treasurer and in multiple executive finance roles since 2006.
When: Announcement made on April 28, 2025.
Where: Roseland, New Jersey - ADP headquarters.
On April 28, 2025, ADP officially announced the appointment of Peter J. Hadley as CFO, effective July 1, 2025. Mr. Hadley succeeds Don McGuire, who will transition out of the CFO role on June 30, 2025 but remains with the company during a transition period through September 30, 2025. This leadership move ensures continuity and strong financial stewardship as ADP advances its strategic initiatives in human capital management technology and international expansion.
Mr. Hadley’s compensation package reflects his critical role in ADP’s future growth, including a \(650,000 base salary, a 150% target annual bonus, and a substantial long-term equity award valued at nearly \)4.9 million for fiscal year 2026. The company also provides robust severance and change-in-control benefits aligning with best corporate governance practices.
ADP closed fiscal year 2024 on a high note with: - 7% revenue growth driven by broad-based strength across small business, mid-market, enterprise, and international segments. - 27.28% operating margin and 19.54% net profit margin, underscoring effective cost management and profitable growth. - Return on equity (ROE) of 82.51%, signaling excellent capital efficiency.
In Q4 2024, ADP achieved 6% revenue growth and expanded EBIT margins by 80 basis points, delivering 11% adjusted EPS growth. The company’s Employer Services bookings grew 7%, topping guidance and reflecting its unmatched distribution capability and product portfolio strength, including its Next Gen HCM solution and AI-powered ADP Assist.
From ADP’s recent earnings calls, several themes stand out that align with the CFO appointment:
Robust business momentum: Consistent 7%+ revenue growth in Employer Services, strong retention rates at 92%, and client satisfaction at all-time highs.
Strategic international expansion: ADP has expanded its Roll product into new international markets like Europe, complemented by partnerships to enhance cross-border solutions.
Investment in AI and tech innovation: ADP Assist, leveraging generative AI, enhances HR operational efficiency and client insights, positioning ADP as a leader in tech-enabled HCM solutions.
Financial discipline: Active portfolio yield management and capital allocation strategies, including a robust laddering strategy for client funds, support client fund interest revenue growth.
As Don McGuire transitions from CFO, his leadership in maintaining financial strength and guiding strategic initiatives sets a strong foundation. Peter Hadley’s deep company experience and financial expertise position ADP to continue executing on its growth strategy with confidence.
Given ADP’s strong financial footing, leadership continuity, and strategic focus, the company is well-positioned to capitalize on ongoing demand for HCM modernization and international payroll expansion. The appointment of a seasoned executive as CFO underscores ADP’s commitment to operational excellence and shareholder value creation in an environment shaped by economic uncertainty, regulatory evolution, and technology-driven transformation.
For more details, refer to the official source: ADP 8-K Filing April 28, 2025
CFOTransition, HCMTechnology, ADPFinancialPerformance, StrategicLeadership, InternationalExpansion