Pershing: ADP overstates shareholder return during CEO's tenure
Pershing Square Capital Management published a detailed response to ADP's September 12 presentation. "ADP's presentation, replete with misleading statements and intellectually dishonest conclusions, demonstrates a lack of recognition for the substantial value-creation opportunity that exists at ADP. ADP's presentation and its other proxy materials attempt to deflect and distract attention away from the key question - Is ADP achieving its full potential? Among the misleading statements, ADP's September 12th presentation and its other shareholder materials attempt to portray the company as outperforming its peers. To make that point, ADP has largely relied on an inflated total shareholder return calculation over CEO Carlos Rodriguez's tenure, and a misleading peer group comparison... ADP has generated a 141% TSR during Mr. Rodriguez's tenure, 62 percentage points lower than ADP's stated TSR of 203%, and substantially lower than ADP's peers. By using an overstated TSR benchmarked against a non-comparable set of companies, ADP is attempting to mislead investors about the performance of the company and argue in favor of the status quo. In reality, ADP has underperformed its competitors by more than 24 percentage points during current management's tenure."