Ackman's Pershing Square loses ADP challenge

Bill Ackman concerned

Bill Ackman concerned

ADP and Pershing Square did not immediately respond to requests for comment.

And Ackman says: "In order to win the contest, ADP has made a number of important commitments to shareholders about margin improvement, the reacceleration of growth beginning next fiscal year, and the upcoming launch of a new Enterprise HCM offering, a product which is meant to address ADP's market share losses in the Enterprise segment". Vanguard and State Street, two of the largest holders, voted in support of Ackman.

"This process has sharpened our focus on the importance of insightful, strategic engagement with our investors, which, over the past few months, has given us a greater appreciation of our owners' perspectives on our business and growth plans", Rodriguez said in a statement.

The board of directors of ADP (Nasdaq:ADP), approved a $0.06 increase in the quarterly cash dividend to an annual rate of $2.52 per share, Carlos Rodriguez, ADP's president and chief executive officer, announced today. They are little changed since Ackman began his proxy battle in August, and have more than doubled during Rodriguez's tenure as CEO.

Ackman said on Monday that he would not dump his stake in ADP if he lost the vote, and would continue to publicly call for changes.

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