Automatic Data Processing (ADP), a provider of cloud-based human capital management (HCM) solutions, is no longer awarding certain types of equity awards. In its latest quarterly filing, ADP revealed it had discontinued granting stock options, time-based restricted stock and performance-based restricted stock.

The new policy began in September 2022.

Either the reference to RSUs is related to units that contain both a time and performance based hurdle, or it appears ADP contradicted the new policy later in the filing— which outlines various vesting requirements for future time and performance based RSU awards. It appears future RSU awards will contain a single achievement hurdle— either time based or performance based but not both:

“Time-based restricted stock unit awards and performance-based restricted stock unit awards granted to employees with a home country of the United States are settled in stock, and for awards granted to employees with a home country outside the United States are generally settled in cash.”