Pershing Square responds to ADP presentation
Pershing Square Capital Management issued a statement in response to ADP's September 12 presentation to investors, which said, "On September 12th, ADP unveiled its so-called "Focused Transformation Strategy." This presentation followed ADP's September 7th press release in which ADP's Board and management commented that it has been "highly focused on investing in and transforming the business" for the past six years. ADP's "Focused Transformation Strategy" demonstrates a lack of recognition for the enormous value-creation opportunity that exists at ADP. Despite various operational initiatives highlighted throughout the presentation, the company's projected results in the presentation suggest that these initiatives will not drive any meaningful margin expansion...On August 17th, Pershing Square presented a detailed presentation highlighting ADP's significant underperformance and opportunities for improvement. Four weeks later, the company has yet to respond to the substance of our arguments and the magnitude of the opportunity...Pershing Square detailed these issues and more in our meeting with the Board on September 5th. Despite that, ADP's September 12th presentation makes clear that the Board and management are perfectly comfortable with the status quo. Pershing Square is seeking to replace the three longest-tenured members of the Board who presided over ADP as it has underachieved its potential for years. The directors we seek to replace do not have technology or industry expertise, a criticism ADP has leveled at our Nominees, and include a business school dean, and two former industrial sector CEOs. Pershing Square's Nominees for ADP's Transformation bring a shareholder orientation along with a major ownership stake, fresh perspectives, and relevant expertise in business transformation, corporate restructuring and cost efficiency execution to accelerate the necessary changes required for ADP to achieve its full potential. Shareholders can send a message to ADP that the status quo is not acceptable and support the Nominees for ADP's Transformation by voting by Internet, telephone or by signing and dating the GOLD Proxy Card or Voting Instruction Form and mailing it in the postage paid envelope provided. We urge shareholders NOT to vote using any white proxy card or voting instruction forms received from ADP. Please discard the white proxy card."