Broadridge Financial Solutions

Last updated
Broadridge Financial Solutions, Inc.
Company type Public company
Industry Financial technology
PredecessorBrokerage Services arm of ADP (founded 1962)
Founded2007;17 years ago (2007)
Headquarters
Lake Success, New York
,
U.S.
Key people
RevenueIncrease2.svg US$6.06 billion (2023)
Increase2.svgUS$936 million (2023)
Increase2.svgUS$631 million (2023)
Total assets Increase2.svgUS$8.23 billion (2023)
Total equity Increase2.svgUS$2.24 billion (2023)
Number of employees
c. 14,700 (2023)
Website broadridge.com
Footnotes /references
Financials as of June 30,2023. [1]

Broadridge Financial Solutions, Inc. is a public corporate services and financial technology company founded in 2007 as a spin-off from management software company Automatic Data Processing. Broadridge supplies public companies with proxy statements, annual reports, and other financial documents, as well as shareholder communications solutions like virtual annual meetings. [2] [3]

Contents

History

Legislation passed in the 1970s in the United States mandated two 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, and required the sale and ownership of securities to be accomplished through chains of transaction records instead of possession of paper certificates. While enabling increased securities trading and rapid rises in stock ownership, these changes had the effect of separating companies from their shareholders, and putting intermediaries between them. [4] : 1–2 

Increased stock-market trading led to greater need for such intermediaries, and the need for shareholders to vote by proxy via the intermediaries instead of directly. This in turn led to a new industry which managed the shareholder voting process. [4] : 1–2, 48  Prior to this new industry, banks and brokers had typically maintained in-house proxy departments for handling these processes. [5] Even after the move to electronic certificates eliminated the need for intermediaries, the intermediaries have continued to exist. [4] : 1–2 

By the mid 1990s, the proxy voting and shareholder communications services industry was dominated by Automatic Data Processing (ADP). [4] : 48  At the end of March, 2007, ADP spun-out the entirety of their shareholder communications activities, resulting in the formation of Broadridge Financial Solutions. [4] : 27  [5]

In the wake of the financial crisis of 2007–2008, Congress evaluated many aspects of corporate governance, including shareholder communications and proxy voting. [6] : 1–2  In 2010 a report submitted to the House Committee on Financial Services by a coalition headed by Business Roundtable noted the near monopoly position of Broadridge in handling proxy voting. [6] : 249  In 2010, the company processed about 350 billion shares for the companies for which it provided services. [7] : 2  By 2013, the company had retained its predominant position in the proxy processing market. [7] : 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. [2] Later in 2016, Broadridge bought M&O Systems, a small Manhattan-based financial services company. [2] In 2016, the company acquired Spence Johnson, an institutional financial flow data intelligence firm co-founded by CEO at the time, Magnus Spence. [8] 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. [8]

In September 2018, Broadridge named Tim Gokey, the company’s president and COO, as the new CEO. [9] Gokey succeeded outgoing CEO Rich Daly in January 2019, with Daly becoming executive chairman of the board. [10] In November 2019, Broadridge announced their acquisition of ClearStructure Financial Technology, a global provider of portfolio management solutions for the private debt markets. [11] In March 2020, Broadridge completed its acquisition of FundsLibrary, a leader in fund document and data dissemination in the European market. [12] In 2021, the company acquired the Sweden-based Itiviti, a global capital markets trading technology provider with offices in over 16 countries and more than 2,000 customers. [13]

As of 2023, Broadridge's market capitalization is $22 billion. [14] According to Barron's , the company's growth since 2007 has been driven by trends like greater “mutualization” in the financial services industry and the increased popularity of investing. [15]

See also

Related Research Articles

<span class="mw-page-title-main">TMX Group</span> Canadian financial services company

TMX Group Limited is a Canadian financial services company that operates equities, fixed income, derivatives, and energy markets exchanges. The company provides services encompassing listings, trading, clearing, settling and depository facilities, information services as well as technology services for the international financial community.

<span class="mw-page-title-main">SAP</span> German multinational enterprise-software company

SAP SE is a German multinational software company based in Walldorf, Baden-Württemberg. It develops enterprise software to manage business operation and customer relations. The company is the world's leading enterprise resource planning (ERP) software vendor.

<span class="mw-page-title-main">Corporate action</span> Event initiated by a public company


A corporate action is an event initiated by a public company that brings or could bring an actual change to the securities—equity or debt—issued by the company. Corporate actions are typically agreed upon by a company's board of directors and authorized by the shareholders. For some events, shareholders or bondholders are permitted to vote on the event. Examples of corporate actions include stock splits, dividends, mergers and acquisitions, rights issues, and spin-offs.

<span class="mw-page-title-main">Euronext</span> European financial services company

Euronext N.V. is a pan-European bourse that provides trading and post-trade services for a range of financial instruments.

<span class="mw-page-title-main">CA Technologies</span> American software company (1976–2018)

CA Technologies, Inc., formerly Computer Associates International, Inc., and CA, Inc., was an American multinational enterprise software developer and publisher that existed from 1976 to 2018. CA grew to rank as one of the largest independent software corporations in the world, and at one point was the second largest. The company created systems software that ran in IBM mainframe, distributed computing, virtual machine, and cloud computing environments.

<span class="mw-page-title-main">ADP (company)</span> American software company

Automatic Data Processing, Inc. (ADP) is an American provider of human resources management software and services, headquartered in Roseland, New Jersey.

<span class="mw-page-title-main">Verifone</span> Multinational point-of-sale equipment manufacturer

Verifone, Inc. is an American multinational corporation headquartered in Coral Springs, Florida. Verifone provides technology for electronic payment transactions and value-added services at the point-of-sale. Verifone sells merchant-operated, consumer-facing and self-service payment systems to the financial, retail, hospitality, petroleum, government and healthcare industries. The company's products consist of POS electronic payment devices that run its own operating systems, security and encryption software, and certified payment software, and that are designed for both consumer-facing and unattended environments.

A proxy statement is a statement required of a firm when soliciting shareholder votes. This statement is filed in advance of the annual meeting. The firm needs to file a proxy statement, otherwise known as a Form DEF 14A, with the U.S. Securities and Exchange Commission. This statement is useful in assessing how management is paid and potential conflict of interest issues with auditors.

Maxim Integrated, a subsidiary of Analog Devices, designs, manufactures, and sells analog and mixed-signal integrated circuits for the automotive, industrial, communications, consumer, and computing markets. Maxim's product portfolio includes power and battery management ICs, sensors, analog ICs, interface ICs, communications solutions, digital ICs, embedded security, and microcontrollers. The company is headquartered in San Jose, California, and has design centers, manufacturing facilities, and sales offices worldwide.

First Data Corporation is a financial services company headquartered in Atlanta, Georgia, United States. The company's STAR Network provides nationwide domestic debit acceptance at more than 2 million retail POS, ATM, and at online outlets for nearly a third of all U.S. debit cards.

NYSE Euronext, Inc. was a transatlantic multinational financial services corporation that operated multiple securities exchanges, including the New York Stock Exchange, Euronext and NYSE Arca. NYSE merged with Archipelago Holdings on March 7, 2006, forming NYSE Group, Inc. On April 4, 2007, NYSE Group, Inc. merged with Euronext N.V. to form the first global equities exchange, with its headquarters in Lower Manhattan. The corporation was then acquired by Intercontinental Exchange, which subsequently spun off Euronext.

<span class="mw-page-title-main">Sierra Wireless</span> Canadian wireless communications company

Sierra Wireless is a Canadian multinational wireless communications equipment designer, manufacturer and services provider headquartered in Richmond, British Columbia, Canada. It also maintains offices and operations in the United States, Korea, Japan, Taiwan, India, France, Australia and New Zealand.

A stock transfer agent, transfer agent, share registry or transfer agency is an entity, usually a third-party firm unrelated to security transactions, that manages the change in ownership of company stock or investment fund shares, maintains a register of ownership and acts as paying agent for the payment of dividends and other distributions to investors. The name derives from the impartial intermediary role a transfer agent plays in validating and registering the purchase of new ownership shares and, in the case of a transfer of ownership, cancelling the name and certificate of shareholders who sell shares and substituting the new owner's name on the official master shareholder register.

<span class="mw-page-title-main">Thomson Reuters</span> Canadian multinational information conglomerate

Thomson Reuters Corporation is a Canadian-American multinational information conglomerate. The company was founded in Toronto, Ontario, Canada and maintains its headquarters at 19 Duncan Street there.

<span class="mw-page-title-main">Mellanox Technologies</span> Israeli-American multinational supplier of computer networking products

Mellanox Technologies Ltd. was an Israeli-American multinational supplier of computer networking products based on InfiniBand and Ethernet technology. Mellanox offered adapters, switches, software, cables and silicon for markets including high-performance computing, data centers, cloud computing, computer data storage and financial services.

<span class="mw-page-title-main">Institutional Shareholder Services</span> Proxy advisory firm

Institutional Shareholder Services Inc. (ISS) is a proxy advisory firm. Hedge funds, mutual funds and similar organizations that own shares of multiple companies pay ISS to advise regarding share holder votes. As the leading firm in the industry, ISS commands a 48 percent market share as of 2021, with its nearest rival, Glass Lewis, holding a 42 percent market share.

Ligand Pharmaceuticals Incorporated is a biopharmaceutical company located in San Diego, California. Founded in 1987 as Progenix Inc., the company went public in 1992. Initially focused on developing its own drugs, a period of turbulence in the early 2000s culminated in its CEO being ejected by the shareholders and provoked a change in focus to the acquisition of existing drugs and forming partnerships to develop them further.

<span class="mw-page-title-main">Dell Technologies</span> American multinational technology company

Dell Technologies Inc. is an American multinational technology company headquartered in Round Rock, Texas. It was formed as a result of the September 2016 merger of Dell and EMC Corporation.

Proxymity is a digital investor communications platform that streamlines processes such as proxy voting and shareholder disclosure. It was developed and operated by Citigroup Inc in London before it spun out in 2020 to become its own company.

<span class="mw-page-title-main">Kyndryl</span> U.S. information technology company

Kyndryl Holdings, Inc. is an American multinational information technology infrastructure services provider. Headquartered in New York City and created from the spin-off of IBM's infrastructure services business in 2021, the company designs, builds, manages and develops large-scale information systems. The company also has business advisory services. It is currently the world's largest IT infrastructure services provider, and the fifth-largest consulting provider.

References

  1. ↑ "Broadridge Financial Solutions, Inc. 2023 Annual Report (Form 10-K)". U.S. Securities and Exchange Commission. 8 August 2023.
  2. 1 2 3 Madore, James T. (9 November 2016). "Broadridge sales soar following merger; profits up slightly". Newsday . Retrieved 17 July 2018.
  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. 1 2 3 4 5 Donald, David C. (18 September 2007). The Rise and Effects of the Indirect Holding System (Report). Working Paper Series No. 68. Institute for Law and Finance. Retrieved 18 July 2018– via Internet Archive (PDFy Mirrors).
  5. 1 2 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   978-0-7355-9895-9. 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.
  6. 1 2 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".
  7. 1 2 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).
  8. 1 2 Baker, Sophie (11 July 2017). "Broadridge Financial Services acquires Spence Johnson". Pensions & Investments. United States: Crain Communications. Retrieved 17 July 2018.
  9. ↑ Lomax, Securities Finance Times reporter Jenna. "Broadridge names new CEO and executive chairman". www.securitiesfinancetimes.com. Retrieved 2024-07-26.
  10. ↑ "Broadridge Taps Tim Gokey to Succeed Rich Daly as CEO in 2019 - WatersTechnology.com". www.waterstechnology.com. 2018-09-13. Retrieved 2024-07-26.
  11. ↑ "Broadridge Expands Asset Management Technology Suite With Acquisition of ClearStructure". Broadridge Financial Solutions. November 20, 2019. Retrieved 4 December 2019.
  12. ↑ "Broadridge Completes Acquisition of FundsLibrary". PRNewswire (Press release). Broadridge Financial Solutions. Retrieved 2020-03-03.
  13. ↑ Girling, William (April 6, 2021). "How will Itiviti help make Broadridge a fintech leader?". FinTech. Retrieved May 3, 2023.
  14. ↑ Jasinski, Nicholas. "Broadridge's Next 3 Years Should Look Like Its Last 3. It's a Strong Case for the Stock". Barron's.
  15. ↑ Jasinski, Nicholas. "Broadridge's Next 3 Years Should Look Like Its Last 3. It's a Strong Case for the Stock". Barron's.

Further reading

This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.