Definitive proxy statements

Pay vs Performance Disclosure

v3.23.2
Pay vs Performance Disclosure - USD ($)
 12 Months Ended
May 31, 2023
May 31, 2022
May 31, 2021
Pay vs Performance Disclosure      
Pay vs Performance Disclosure, Table
Pay Versus Performance
In accordance with rules adopted by the SEC, we provide the following disclosure regarding executive compensation for our principal executive officers (“PEO”) and
Non-PEO
NEOs and Company performance for the fiscal years listed below.
 
               
    
Summary Compensation
Table Total for PEO
    
Compensation Actually
Paid to PEO
    
Average
Summary
Compensation
Table Total
for
Non-PEO

NEOs
(2)
(d)
    
Average
Compensation
Actually Paid
to
Non-PEO

NEOs
(2)(3)
(e)
    
Value of Initial Fixed $100
Investment Based On:
    
Net
Income
(in millions)
(h)
    
Operating
Income,
Net of
Certain
Items
(5)

(in millions)
(i)
  
Fiscal
Year
(a)
  
Gibson
(1)
(b)
    
Mucci
(1)
(b)
    
Gibson
(1)(3)
(c)
    
Mucci
(1)(3)
(c)
    
Total
Shareholder
Return
(f)
    
Peer Group
Total
Shareholder
Return
(4)
(g)
  
                     
2023   $ 6,680,180     $ 14,442,172     $ 5,660,044     $ (3,614,572 )    $ 2,691,157     $ 1,782,985     $ 157.41     $ 121.58     $ 1,557     $ 1,933  
                     
2022   $ —     $ 11,025,026     $ —     $ 23,305,787     $ 3,257,026     $ 5,846,642     $ 180.70     $ 120.09     $ 1,393     $ 1,782  
                     
2021   $ —     $ 9,627,247     $ —     $ 21,142,733     $ 2,605,572     $ 4,992,766     $ 144.16     $ 128.92     $ 1,098     $ 1,434  
 
(1)
Martin Mucci was PEO in fiscal 2021, 2022, and from June 1, 2022 through October 13, 2022. John B Gibson was PEO during fiscal 2023 following October 13, 2022. The amounts deducted and added in calculating Compensation Actually Paid (“CAP”) for Messrs. Gibson and Mucci are as follows:
 
       
    
2023
    
2022
    
2021
  
   
    
Gibson
    
Mucci
    
Mucci
    
Mucci
  
Summary Compensation Table Total
  
$
6,680,180
 
  
$
14,442,172
 
  
$
11,025,026
 
  
$
9,627,247
 
Deduction of stock awards and option awards reported in the Summary Compensation Table
  
 
(4,499,911
) 
  
 
(13,834,614
) 
  
 
(7,524,498
) 
  
 
(6,593,205
) 
Fiscal
year-end
value of equity awards granted during the fiscal year that remained unvested as of the last day of the fiscal year
  
 
4,462,431
 
  
 
168,166
 
  
 
11,354,810
 
  
 
10,612,220
 
Change in fair value from the last day of the prior fiscal year to the last day of the fiscal year of unvested equity awards
  
 
(733,534
) 
  
 
(3,045,896
) 
  
 
5,958,022
 
  
 
6,279,372
 
Change in fair value from the last day of the prior fiscal year to the vesting date during the fiscal year
  
 
(297,669
) 
  
 
(1,465,668
) 
  
 
2,196,647
 
  
 
925,937
 
Value of dividends or other earnings paid on equity awards not otherwise included
  
 
48,547
 
  
 
121,268
 
  
 
295,780
 
  
 
291,162
 
Compensation Actually Paid
  
$
5,660,044
 
  
$
(3,614,572
) 
  
$
23,305,787
 
  
$
21,142,733
 
 
(2)
For fiscal 2023, the Company’s
Non-PEO
NEOs were Efrain Rivera, Mark A. Bottini, Michael E. Gioja, and Stephanie L. Schaeffer. For fiscal 2022 and 2021, the Company’s
Non-PEO
NEOs were Efrain Rivera, John B. Gibson, Mark A. Bottini, and Michael E. Gioja. The amounts deducted and added in calculating the average CAP for these NEOs are as follows:
 
       
  
 
  
2023
    
2022
    
2021
  
       
Summary Compensation Table Total
  
 
$2,691,157
 
  
 
$3,257,026
 
  
 
$2,605,572
 
       
Deduction of stock awards and option awards reported in the Summary Compensation Table
  
 
(1,506,266
) 
  
 
(1,831,397
) 
  
 
(1,418,164
) 
       
Fiscal
year-end
value of equity awards granted during the fiscal year that remained unvested as of the last day of the fiscal year
  
 
1,432,683
 
  
 
2,733,022
 
  
 
2,282,633
 
       
Change in fair value from the last day of the prior fiscal year to the last day of the fiscal year of unvested equity awards
  
 
(594,115
) 
  
 
1,226,988
 
  
 
1,099,982
 
       
Change in fair value from the last day of the prior fiscal year to the vesting date during the fiscal year
  
 
(269,858
) 
  
 
398,987
 
  
 
371,626
 
       
Value of dividends or other earnings paid on equity awards not otherwise included
  
 
29,384
 
  
 
62,016
 
  
 
51,117
 
       
Compensation Actually Paid
  
 
$1,782,985
 
  
 
$5,846,642
 
  
 
$4,992,766
 
 
 
(3)
In calculating the year-over-year change in the value of unvested option awards as well as the change in value to
mid-year
vesting dates, the options’ Black-Scholes values were calculated at each measurement date in accordance with FASB ASC Topic 718. In valuing performance share awards, the fair value of unearned or earned but unvested awards was calculated based on interim or final payout factors, as of the relevant measurement date.
 
(4)
The Peer Group Total Shareholder Return (“TSR”) set forth in this table utilizes the Company’s peer group used for executive compensation benchmarking purposes which was also utilized in the stock performance graph required by Item 201(e) of Regulation
S-K
included in our Form
10-K
for the year ended May 31, 2023.
 
(5)
Operating income, net of certain items is a
non-GAAP
measure. Refer to “Paychex, Inc.
Non-GAAP
Financial Measures” in Appendix A of this proxy statement for a discussion of this
non-GAAP
measure and a reconciliation to the most comparable GAAP measure of operating income.
   
Company Selected Measure Name Operating income, net of certain items    
Named Executive Officers, Footnote For fiscal 2023, the Company’s
Non-PEO
NEOs were Efrain Rivera, Mark A. Bottini, Michael E. Gioja, and Stephanie L. Schaeffer. For fiscal 2022 and 2021, the Company’s
Non-PEO
NEOs were Efrain Rivera, John B. Gibson, Mark A. Bottini, and Michael E. Gioja. 		   
Peer Group Issuers, Footnote The Peer Group Total Shareholder Return (“TSR”) set forth in this table utilizes the Company’s peer group used for executive compensation benchmarking purposes which was also utilized in the stock performance graph required by Item 201(e) of Regulation
S-K
included in our Form
10-K
for the year ended May 31, 2023. 		   
Adjustment To PEO Compensation, Footnote
(1)
Martin Mucci was PEO in fiscal 2021, 2022, and from June 1, 2022 through October 13, 2022. John B Gibson was PEO during fiscal 2023 following October 13, 2022. The amounts deducted and added in calculating Compensation Actually Paid (“CAP”) for Messrs. Gibson and Mucci are as follows:
 
       
    
2023
    
2022
    
2021
  
   
    
Gibson
    
Mucci
    
Mucci
    
Mucci
  
Summary Compensation Table Total
  
$
6,680,180
 
  
$
14,442,172
 
  
$
11,025,026
 
  
$
9,627,247
 
Deduction of stock awards and option awards reported in the Summary Compensation Table
  
 
(4,499,911
) 
  
 
(13,834,614
) 
  
 
(7,524,498
) 
  
 
(6,593,205
) 
Fiscal
year-end
value of equity awards granted during the fiscal year that remained unvested as of the last day of the fiscal year
  
 
4,462,431
 
  
 
168,166
 
  
 
11,354,810
 
  
 
10,612,220
 
Change in fair value from the last day of the prior fiscal year to the last day of the fiscal year of unvested equity awards
  
 
(733,534
) 
  
 
(3,045,896
) 
  
 
5,958,022
 
  
 
6,279,372
 
Change in fair value from the last day of the prior fiscal year to the vesting date during the fiscal year
  
 
(297,669
) 
  
 
(1,465,668
) 
  
 
2,196,647
 
  
 
925,937
 
Value of dividends or other earnings paid on equity awards not otherwise included
  
 
48,547
 
  
 
121,268
 
  
 
295,780
 
  
 
291,162
 
Compensation Actually Paid
  
$
5,660,044
 
  
$
(3,614,572
) 
  
$
23,305,787
 
  
$
21,142,733
 
   
Non-PEO NEO Average Total Compensation Amount $ 2,691,157 $ 3,257,026 $ 2,605,572
Non-PEO NEO Average Compensation Actually Paid Amount $ 1,782,985 5,846,642 4,992,766
Adjustment to Non-PEO NEO Compensation Footnote
(2)
For fiscal 2023, the Company’s
Non-PEO
NEOs were Efrain Rivera, Mark A. Bottini, Michael E. Gioja, and Stephanie L. Schaeffer. For fiscal 2022 and 2021, the Company’s
Non-PEO
NEOs were Efrain Rivera, John B. Gibson, Mark A. Bottini, and Michael E. Gioja. The amounts deducted and added in calculating the average CAP for these NEOs are as follows:
 
       
  
 
  
2023
    
2022
    
2021
  
       
Summary Compensation Table Total
  
 
$2,691,157
 
  
 
$3,257,026
 
  
 
$2,605,572
 
       
Deduction of stock awards and option awards reported in the Summary Compensation Table
  
 
(1,506,266
) 
  
 
(1,831,397
) 
  
 
(1,418,164
) 
       
Fiscal
year-end
value of equity awards granted during the fiscal year that remained unvested as of the last day of the fiscal year
  
 
1,432,683
 
  
 
2,733,022
 
  
 
2,282,633
 
       
Change in fair value from the last day of the prior fiscal year to the last day of the fiscal year of unvested equity awards
  
 
(594,115
) 
  
 
1,226,988
 
  
 
1,099,982
 
       
Change in fair value from the last day of the prior fiscal year to the vesting date during the fiscal year
  
 
(269,858
) 
  
 
398,987
 
  
 
371,626
 
       
Value of dividends or other earnings paid on equity awards not otherwise included
  
 
29,384
 
  
 
62,016
 
  
 
51,117
 
       
Compensation Actually Paid
  
 
$1,782,985
 
  
 
$5,846,642
 
  
 
$4,992,766
 
   
Compensation Actually Paid vs. Total Shareholder Return
 
 
LOGO
 
    
Compensation Actually Paid vs. Net Income
 
 
LOGO
   
Compensation Actually Paid vs. Company Selected Measure
 
 
LOGO
 
    
Total Shareholder Return Vs Peer Group
LOGO
 
    
Tabular List, Table
Tabular List
The following list presents the financial performance measures that the Company considers to have been the most important in linking CAP to our PEOs and
Non-PEO
NEOs for fiscal 2023 to Company performance. The measures in the table are not ranked.
 
•  
Annualized new business revenue
(1)
 
•  
Operating income, net of certain items
(2)
 
•  
Service revenue
   
Total Shareholder Return Amount $ 157.41 180.7 144.16
Peer Group Total Shareholder Return Amount 121.58 120.09 128.92
Net Income (Loss) $ 1,557,000,000 $ 1,393,000,000 $ 1,098,000,000
Company Selected Measure Amount 1,933,000,000 1,782,000,000 1,434,000,000
Measure:: 1      
Pay vs Performance Disclosure      
Name Annualized new business revenue    
Measure:: 2      
Pay vs Performance Disclosure      
Name Operating income, net of certain items    
Non-GAAP Measure Description Operating income, net of certain items is a
non-GAAP
measure. Refer to “Paychex, Inc.
Non-GAAP
Financial Measures” in Appendix A of this proxy statement for a discussion of this
non-GAAP
measure and a reconciliation to the most comparable GAAP measure of operating income. 		   
Measure:: 3      
Pay vs Performance Disclosure      
Name Service revenue    
Martin Mucci [Member]      
Pay vs Performance Disclosure      
PEO Total Compensation Amount $ 14,442,172 $ 11,025,026 $ 9,627,247
PEO Actually Paid Compensation Amount $ (3,614,572) 23,305,787 21,142,733
PEO Name Martin Mucci    
John B Gibson [Member]      
Pay vs Performance Disclosure      
PEO Total Compensation Amount $ 6,680,180    
PEO Actually Paid Compensation Amount $ 5,660,044    
PEO Name John B Gibson    
PEO | Martin Mucci [Member] | Stock Awards And Option Awards [Member]      
Pay vs Performance Disclosure      
Adjustment to Compensation, Amount $ (13,834,614) (7,524,498) (6,593,205)
PEO | Martin Mucci [Member] | Fiscal Year End Value Of Equity Awards Granted During The Fiscal Year That Remained Unvested As Of The Last Day Of The Fiscal Year [Member]      
Pay vs Performance Disclosure      
Adjustment to Compensation, Amount 168,166 11,354,810 10,612,220
PEO | Martin Mucci [Member] | Change In Fair Value From The Last Day Of The Prior Fiscal Year To The Last Day Of The Fiscal Year Of Unvested Equity Awards [Member]      
Pay vs Performance Disclosure      
Adjustment to Compensation, Amount (3,045,896) 5,958,022 6,279,372
PEO | Martin Mucci [Member] | Change In Fair Value From The Last Day Of The Prior Fiscal Year To The Vesting Date During The Fiscal Year [Member]      
Pay vs Performance Disclosure      
Adjustment to Compensation, Amount (1,465,668) 2,196,647 925,937
PEO | Martin Mucci [Member] | Value Of Dividends Or Other Earnings Paid On Equity Awards Not Otherwise Included [Member]      
Pay vs Performance Disclosure      
Adjustment to Compensation, Amount 121,268 295,780 291,162
PEO | John B Gibson [Member] | Stock Awards And Option Awards [Member]      
Pay vs Performance Disclosure      
Adjustment to Compensation, Amount (4,499,911)    
PEO | John B Gibson [Member] | Fiscal Year End Value Of Equity Awards Granted During The Fiscal Year That Remained Unvested As Of The Last Day Of The Fiscal Year [Member]      
Pay vs Performance Disclosure      
Adjustment to Compensation, Amount 4,462,431    
PEO | John B Gibson [Member] | Change In Fair Value From The Last Day Of The Prior Fiscal Year To The Last Day Of The Fiscal Year Of Unvested Equity Awards [Member]      
Pay vs Performance Disclosure      
Adjustment to Compensation, Amount (733,534)    
PEO | John B Gibson [Member] | Change In Fair Value From The Last Day Of The Prior Fiscal Year To The Vesting Date During The Fiscal Year [Member]      
Pay vs Performance Disclosure      
Adjustment to Compensation, Amount (297,669)    
PEO | John B Gibson [Member] | Value Of Dividends Or Other Earnings Paid On Equity Awards Not Otherwise Included [Member]      
Pay vs Performance Disclosure      
Adjustment to Compensation, Amount 48,547    
Non-PEO NEO | Stock Awards And Option Awards [Member]      
Pay vs Performance Disclosure      
Adjustment to Compensation, Amount (1,506,266) (1,831,397) (1,418,164)
Non-PEO NEO | Fiscal Year End Value Of Equity Awards Granted During The Fiscal Year That Remained Unvested As Of The Last Day Of The Fiscal Year [Member]      
Pay vs Performance Disclosure      
Adjustment to Compensation, Amount 1,432,683 2,733,022 2,282,633
Non-PEO NEO | Change In Fair Value From The Last Day Of The Prior Fiscal Year To The Last Day Of The Fiscal Year Of Unvested Equity Awards [Member]      
Pay vs Performance Disclosure      
Adjustment to Compensation, Amount (594,115) 1,226,988 1,099,982
Non-PEO NEO | Change In Fair Value From The Last Day Of The Prior Fiscal Year To The Vesting Date During The Fiscal Year [Member]      
Pay vs Performance Disclosure      
Adjustment to Compensation, Amount (269,858) 398,987 371,626
Non-PEO NEO | Value Of Dividends Or Other Earnings Paid On Equity Awards Not Otherwise Included [Member]      
Pay vs Performance Disclosure      
Adjustment to Compensation, Amount $ 29,384 $ 62,016 $ 51,117