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"Newsday" featured Pace University’s Lubin School of Business finance professor Padma Kadiyala in "LI's Broadridge: Wall Street's quiet back office"

03/07/2019

"Newsday" featured Pace University’s Lubin School of Business finance professor Padma Kadiyala in "LI's Broadridge: Wall Street's quiet back office"

Broadridge Financial Solutions Inc. is the  $11.7 billion Long Island business that most people have never heard of even though it touches their lives in myriad ways.

The Lake Success company delivers billions of documents to shareholders each year and processes trillions of dollars in stock trades each day. 

If you've received a proxy statement -- the form asking you to vote your shares to elect a company's board of directors -- it likely came from Broadridge. If you've traded stocks through E*Trade or Raymond James, Broadridge executed your transaction. Your credit card bill may have come from Broadridge, too.

And it all started in the back bedroom of an East Northport house.

Richard J. Daly founded Broadridge's largest division, investor communications, in his then-East Northport home in 1987. He stepped down as CEO Jan. 2, handing the reins to Timothy C. Gokey in  the company's first leadership change since it went public 12 years ago. Daly is now executive chairman.  

A low profile suits Broadridge because it serves as Wall Street’s back office, performing routine but vital work for the biggest stock brokerages and mutual funds. The company dominates the market in two of its core businesses. It runs the board elections for almost every U.S. public company and delivers proxies and other  financial statements to 80 percent of North American households, executives said. Proxy season, the company's busiest time of the year, begins next month. 

“Broadridge plays a very critical role,” said Padma Kadiyala, a finance professor at Pace University’s Lubin School of Business in Pleasantville, in Westchester County.

The fact that they aren’t well-known is their greatest strength because it means people are quite satisfied with the work they are doing,” she said. “The only reason back-office companies are in the news is if they did something wrong, such as reporting something inaccurately.”

Broadridge is Long Island’s second-largest public company by revenue after medical supplies distributor Henry Schein Inc. in Melville. Broadridge reported revenue of $4.3 billion for the 12 months ended June 30, up 5 percent from a year earlier. Profit climbed 31 percent year over year, to $428 million. The company has a stock market value of $11.7 billion.

About 2,300 people work for the company locally, most at several large factories in Edgewood. They are part of a worldwide workforce totaling more than 10,000.

Read the full article.