Wikipedia

Broadridge Financial Solutions

Broadridge Financial Solutions is a public corporate services company founded in 2007 as a spin-off from Automatic Data Processing.

Broadridge Financial Solutions, Inc.
Company typePublic
IndustryFinancial technology
PredecessorBrokerage Services arm of ADP (founded 1962)
Founded2007; 17 years ago (2007)
Headquarters
Lake Success, New York[1]
,
United States
Key people
  • Tim Gokey (CEO and President)
  • Richard J. Daly (Executive Chairman & Former CEO)
  • Leslie A. Brun (Chairman)
RevenueIncrease US$6.507 billion (Fiscal Year Ended June 30, 2024)[2]
Increase US$1.303 billion (Fiscal Year Ended June 30, 2024)[2]
Increase US$0.698 billion (Fiscal Year Ended June 30, 2024)[2]
Total assetsIncrease US$8.242 billion (Fiscal Year Ended June 30, 2024)[2]
Total equityDecrease US$2.168 billion (Fiscal Year Ended June 30, 2024)[2]
Number of employees
14,000 (2024[2])
Websitebroadridge.com

The main business of Broadridge is as a service provider supplying public companies with proxy statements, annual reports and other financial documents, and shareholder communications solutions, such as virtual annual meetings.[1][3]

History

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1962-2006

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Broadridge was founded in 1962[4] as ADP Brokerage Services Group,[5] a business unit[6] of the American payroll processing company Automatic Data Processing (ADP).[4]

Operating as ADP's shareholder communications division,[7]: 27 [8] it initially served one client by processing an average of 300 trades per night.[5]

1970s legislation in the United States changed the industry by mandating two new processes for securities and their transfer: immobilization and dematerialization. These processes required physical stock certificates and other paper securities to be kept in bulk by intermediaries, with the sale and ownership of securities recorded through chains of transaction records instead of possession of paper certificates. These changes increased securities trading and led to a rapid rise in stock ownership, and also had the effect of putting intermediaries between companies and their shareholders.[7]: 1–2 

Immobilization led to greater need for such intermediaries and created a new situation where shareholders voted by proxy instead of directly, and this in turn led a new industry to manage the shareholder voting process.[7]: 1–2, 48  Prior to this industry transformation, banks and brokers typically maintained in-house proxy departments for handling these processes.[8] which remained in place even after electronic certificates eliminated the need for intermediaries.[7]: 1–2 

ADP Brokerage Services Group operated as one of those intermediaries,[5] and by the mid 1990s, Automatic Data Processing dominated the proxy voting and shareholder communications services industry.[7]: 48 

2007-2017

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At the end of March, 2007, ADP spun-out the entirety of their shareholder communications activities, resulting in the formation of Broadridge Financial Solutions.[7]: 27 [8][6]

Operating as an independent public company,[4] in 2010, the company processed about 350 billion shares for its clients.[9]: 2 

Congress evaluated aspects of corporate governance, including shareholder communications and proxy voting, in the wake of the financial crisis of 2007–2008.[10]: 1–2  In 2010 testimony by a vice president of NERA Economic Consulting and Jonathan R. Macey noted with alarm the near monopoly position of Broadridge in handling proxy voting.[10]: 249 

In 2010, the company processed about 350 billion shares for the companies for which it provided services.[9]: 2  Broadridge had retained its predominant position in the proxy processing market by 2013.[9]: 17 

In the summer of 2016, Broadridge acquired the North America Customer Communications (NACC) unit of DST Systems, a Kansas City-based business services provider, which provided the company with addressing information for about 75% of all public company shareholders in the United States and Canada.[1] Later in 2016, Broadridge bought M&O Systems, a small Manhattan-based financial services company.[1] In 2016, the company acquired Spence Johnson, an institutional financial flow data intelligence firm co-founded by CEO at the time, Magnus Spence.[11] This was a strategic investment by Broadridge, allowing for the combination of Broadridge's retail data and analytics with Spence Johnson's data and analytics focused on money flows between firms, two distinct intelligence dimensions.[11]

2017-2024

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In 2017, the company had 10,000 employees.[12] On January 2, 2019, Tim Gokey succeeded Rich Daly as Chief Executive Officer. Daly became Executive Chairman of the Board.[5] In November 2019, Broadridge acquired ClearStructure Financial Technology, which provided portfolio management solutions for the private debt markets.[13] In March 2020, Broadridge completed its acquisition of FundsLibrary, a leader in fund document and data dissemination in the European market.[14]

In 2021, it had assets of US$8.119 billion, equity of $1.809 billion, net income of $547 million, operating income of $678 million, and revenue of $4.993 billion.[15]

The company agreed in 2021 to acquire the Sweden-based Itiviti from Nordic Capital for $2.5 billion.[6]

In 2024 specific offerings included “new mutual funds, ETFs, managed accounts, app-based trading, and zero-commission trading." It had also enabled “pass-through voting,” allowing shareholders to do proxy votes directly rather than through an investment manager.[4]

See also

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References

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  1. ^ a b c d Madore, James T. (9 November 2016). "Broadridge sales soar following merger; profits up slightly". Newsday. Retrieved 17 July 2018.
  2. ^ a b c d e f https://www.broadridge-ir.com/news/news-details/2024/Broadridge-Reports-Fourth-Quarter-and-Fiscal-2024-Results/default.aspx
  3. ^ Kennedy, Patrick (25 February 2017). "Companies embrace virtual annual shareholder meetings". Business. StarTribune. Minneapolis, Minnesota. pp. D1–2. Retrieved 17 July 2018 – via Newspapers.com (Publisher Extra). Note: The URL in citation is for segment on D2; segment on D1 appears at this url.
  4. ^ a b c d Mehta, Stephanie (January 8, 2024), These CEOS aim to make financial sevices more accessible to consumers, Fast Company, retrieved November 8, 2024{{citation}}: CS1 maint: year (link)
  5. ^ a b c d History, Broadridge, 2024, retrieved November 8, 2024
  6. ^ a b c Trentmann, Nina (March 30, 2021), Broadridge CFO Looks to Reduce Debt After $2.5 Billion Deal, The Wall Street Journal, retrieved November 8, 2024{{citation}}: CS1 maint: year (link)
  7. ^ a b c d e f Donald, David C. (18 September 2007). The Rise and Effects of the Indirect Holding System (Report). Working Paper Series. Vol. No. 68. Institute for Law and Finance. Retrieved 18 July 2018 – via Internet Archive (PDFy Mirrors). {{cite report}}: |volume= has extra text (help)
  8. ^ a b c Wilcox, John C.; Niels C., Holch (2018). "Chapter 11: "Street Name" Registration & the Proxy Solicitation Process". In Goodman, Amy L.; Olson, John F.; Fontenot, Lisa A. (eds.). A Practical Guide to SEC Proxy and Compensation Rules (5th ed.). New York: Wolters Kluwer. pp. 11–16, 17. ISBN 9780735598959. OCLC 1003678941 – via Google Books. Note: Source includes specific details on transfer of proxy authority, too detailed to include here, and a generic process rather than company-specific.
  9. ^ a b c Subcommittee on Capital Markets and Government Sponsored Enterprises, Committee on Financial Services (5 June 2013). Examining the Market Power and Impact of Proxy Advisory Firms (Report). Government Publishing Office. Retrieved 18 July 2018 – via Internet Archive (U.S. Congressional Hearings).
  10. ^ a b Subcommittee on Capital Markets Insurance and Government Sponsored Enterprises, Committee on Financial Services (21 April 2010). Corporate Governance and Shareholder Empowerment (Hearing) (Report). Vol. One Hundred Eleventh Congress, Second Session. Government Publishing Office. p. 249. Retrieved 18 July 2018 – via Internet Archive (U.S. Congressional Hearings). Appears under heading "The Lack of Competition in Proxy Processing Services".
  11. ^ a b Baker, Sophie (11 July 2017). "Broadridge Financial Services acquires Spence Johnson". Pensions & Investments. United States: Crain Communications. Retrieved 17 July 2018.
  12. ^ "Annual Report 2017" (PDF). Broadridge Financial Solutions. 2017. Retrieved 17 July 2018.[self-published source]
  13. ^ "Broadridge Expands Asset Management Technology Suite With Acquisition of ClearStructure". Broadridge Financial Solutions. November 20, 2019. Retrieved 4 December 2019.
  14. ^ Inc, Broadridge Financial Solutions. "Broadridge Completes Acquisition of FundsLibrary". www.prnewswire.com (Press release). Retrieved 2020-03-03. {{cite press release}}: |last= has generic name (help)
  15. ^ "Broadridge Financial Solutions, Inc. 2021 Annual Report" (PDF). s1.q4cdn.com. 30 June 2021. Retrieved 7 October 2021.

Further reading

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  • Kaul, Asha (2012). "Chapter 2. Ardhanareshwar: Unison of Ultimate Reality". In Kaul, Asha; Singh, Manjari (eds.). New Paradigms of Gender Inclusivity. New Delhi: PHI Learning. ISBN 9788120345133. OCLC 896478066 – via Google Books. Broadridge India, formerly a brokerage services division of Automatic Data Processing (ADP) Inc., began operating as an independent public company in India in March 2007. (opening sentence of chapter abstract)
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