Automatic Data Processing can be already creating many of the alterations activist shareholder William Ackman can be advocating, yet the idea will take time to see results, Chief Executive Officer Carlos Rodriguez said in an interview on Wednesday.
“We have a pretty Great track record of being able to deliver Great improvements in our own business without creating massive one-time job cuts,” Rodriguez said.
He defended his six-year record at ADP as well as said Ackman’s proxy contest through which the billionaire investor can be seeking three board seats can be hurting the human resources software company.
After acquiring a stake inside company earlier This particular year, Ackman said he wanted ADP to become more efficient, slim down its real estate holdings as well as cut what he calls a bloated bureaucracy.
yet Rodriguez said he as well as the board have been working on all of those things for years. Ackman’s request to pick up the pace on change could be dangerous to the company, which he characterized as important to the U.S. economy as well as millions of workers globally.
Ackman’s goals can only be achieved quickly by eliminating 15,000 to 20,000 of ADP’s 58,000 employees, Rodriguez said.
“His public potshots are not Great for our associates, they are not Great for the clients as well as they are not Great for anyone,” said the CEO, who incorporates a goal of improving margins by 500 basis points over the next three years.
A representative for Ackman did not immediately respond to a request for comment.
Shareholders will decide on Nov. 7 whether to back Ackman as well as his director candidates. ADP’s board has said his nominees bring no completely new ideas or skills to the table.
With the vote less than four weeks away, Rodriguez said “there can be nothing I’d like more than due to This particular to go away.”
ADP shares ended up 0.2 percent at $113.93 on Wednesday, giving the company a market capitalization of $50.6 billion.