EX-10 (o) Officer Performance Incentive Program FYE May 31, 2007

EX-10.O 3 l20831aexv10wo.txt EX-10 (O) OFFICER PERFORMANCE INCENTIVE PROGRAM FYE MAY 31, 2007 EXHIBIT 10(o) PAYCHEX, INC. OFFICER PERFORMANCE INCENTIVE PROGRAM FOR THE YEAR ENDING MAY 31, 2007 PLAN DESCRIPTION 1. Participants: Officers of Paychex, Inc. 2. The maximum incentive for the Chief Executive Officer is 120% of base salary plus any bonus awards recommended by the Governance and Compensation Committee and approved by the Board of Directors for over-achievement of operating objectives. The maximum is 80% of base salary for Senior Vice Presidents and 55% for all other Officers. 3. Performance Criteria: The payment of cash bonus awards to participants shall be determined by the Board on a discretionary basis based primarily on how year-over-year revenue growth, year-over-year growth in operating income excluding stock-based compensation and interest on funds held for clients, and improvement in operating income excluding stock-based compensation and interest on funds held for clients as a percentage of service revenues for the fiscal year compared to the goals that are established annually by the Board of Directors. 4. Payment: Incentive payments to be paid in July 2007 after Board approval. Officer must be employed at the fiscal year end to be eligible for any bonus. 5. Changes and Termination: Bonus awards, changes to and termination of the Program is at the sole discretion of the Board.