ADP senior leadership believes it can be more successful (considering only stock price) with less experienced, less skilled EEs that make less money.
Cutting costs like that is known to raise stock prices in the short term. It remains to be seen if ADP can sustain growth/quality/retention without the people that got them there in the first place. It seems counter intuitive and goes against the mantra of elite leaders at the best companies (fyi, I do not consider Carlos a great or even a good leader).
So, it's a risk. My educated opinion is that ADPs senior leadership is focusing on short term stock prices at a cost that will undermine their position in the mid to long term. Is that risk worth upending the lives of thousands of families? My answer would be...no.
A couple things that won't show up on ADPs balance sheet...
EE loyalty used to be pretty strong at ADP. Now it's dead. Senior leadership killed it. EE turnover rates will be interesting.
Much of that tenured talent now works for smaller, aggressive competitors that are going hard after ADP clients with some success.
Time will tell. FWIW, I sold all my stock and recently left ADP...voluntarily.
Good post by @YnmApfq-1ekm, I thought it deserved its own thread.