Paychex, Inc. Annual report pursuant to Section 13 and 15(d)

Stock Based Compensation Plans (Tables)

12 Months Ended

May 31, 2011

Shares

Exercise

outstanding as of

granted

price

May 31, 2011

Date of broad-based grant

(millions)

per share

(millions)

Vesting schedule

April 2004

1.7

37.72

0.7

25% each April in 2005 through 2008

October 2006

2.0

37.32

1.2

20% each October in 2007 through 2011


(1)		Market price of the underlying stock as of May 31, 2011 less the exercise price.


	Year ended May 31,
In millions, except per share amounts	2011		2010		2009

Weighted-average grant-date fair value of stock options granted (per share)	$	4.02	$	4.37	$	6.52
Total intrinsic value of stock options exercised	$	1.9	$	1.4	$	2.6
Total grant-date fair value of stock options vested	$	20.0	$	19.0	$	25.8


	Year ended May 31,
	2011			2010			2009

Risk-free interest rate		2.2	%		3.0	%		3.2	%
Dividend yield		4.2	%		4.5	%		3.6	%
Volatility factor		.24			.28			.28
Expected option life in years		6.5			6.3			6.3


				Weighted-average
				grant-date
	Restricted			fair value
In millions, except per share amounts	shares			per share

Nonvested as of May 31, 2008		0.2		$	41.48
Granted		0.1		$	31.76
Vested		(0.1	)	$	39.82
Forfeited		—		$	36.81

Nonvested as of May 31, 2009		0.2		$	36.74
Granted		0.2		$	24.60
Vested		—		$	35.79
Forfeited		—		$	32.66

Nonvested as of May 31, 2010		0.4		$	31.95
Granted		0.1		$	26.40
Vested		(0.1	)	$	35.60
Forfeited		(0.1	)	$	30.02

Nonvested as of May 31, 2011		0.3		$	29.88


				Weighted-average
				grant-date
				fair value
In millions, except per share amounts	RSUs			per share

Nonvested as of May 31, 2008		0.4		$	40.60
Granted		0.6		$	28.30
Vested		(0.1	)	$	40.60
Forfeited		—		$	34.65

Nonvested as of May 31, 2009		0.9		$	32.93
Granted		0.6		$	20.62
Vested		(0.2	)	$	34.01
Forfeited		(0.1	)	$	28.88

Nonvested as of May 31, 2010		1.2		$	27.39
Granted		0.6		$	21.52
Vested		(0.3	)	$	28.96
Forfeited		(0.1	)	$	25.08

Nonvested as of May 31, 2011		1.4		$	24.83


			Weighted-average
			grant-date
	Performance		fair value
In millions, except per share amounts	shares		per share

Unearned performance shares as of May 31, 2010		—	$	—
Granted⁽¹⁾		0.1	$	23.85
Forfeited		—	$	23.55

Unearned performance shares as of May 31, 2011		0.1	$	23.90


(1)		Performance shares granted assuming achievement of performance goals at target. Actual amount of shares to be earned may differ from this amount.