Broadridge Financial Solutions gets $17 million in tax breaks to keep 1,500 jobs in Islip Town
Broadridge Financial Solutions, seen here in 2018, functions as Wall Street’s back office by delivering documents to shareholders each year. Credit: Johnny Milano
The Suffolk County Industrial Development Agency has given final approval to $17 million in tax breaks for Broadridge Financial Solutions Inc., one of several efforts to keep the company from moving more than 1,500 jobs out of state.
The IDA board voted unanimously last week to grant the tax aid over a 12-year period.
“At a time when many businesses are facing difficult challenges, helping businesses retain employees is of paramount importance to Suffolk’s economy,” County Executive Edward P. Romaine told Newsday on Wednesday.
Broadridge is a public company that functions as Wall Street’s back office by delivering more than 7 billion documents to shareholders each year and processing trillions of dollars in stock trades each day. Securities filings show the company reported a profit of $839.5 million for the year ended June 30 on revenue of $6.9 billion.
Broadridge requested additional tax incentives from the county as it weighs whether to renew leases on 722,400 square feet in two buildings in Edgewood, which is a neighborhood in Islip Town. The leases expire in February 2028 and February 2029.
The public company also has two other buildings in Edgewood, a headquarters in Lake Success and an office in Manhattan. All have leases coming due in the next few years, according to the application for IDA assistance.
If Broadridge accepts Suffolk’s offer of more tax aid, the company would spend $91 million on improvements to 51 Mercedes Way and 1155 Long Island Ave., both in Edgewood, plus retain the 1,531 employees that are assigned there. Their jobs pay, on average, $111,353 per year, the application states.
Broadridge spokesman Gregg L. Rosenberg said the company appreciates Romaine and IDA leaders “for recognizing that there is significant competition from other states in attracting strong and growing companies. We thank the IDA for addressing this competition and taking steps to keep high-quality jobs on Long Island.”
In the application, Frederic Khalil, Broadridge’s chief procurement and real estate officer, wrote that the company is considering closing one of the Edgewood buildings and the Lake Success headquarters to cut costs. He said the work and jobs would be transferred to other facilities in California, Connecticut, Florida, Tennessee and Texas.
If the cost-savings plan was implemented, Broadridge’s workforce of 2,300 people in New York State would shrink by about 1,500 people to about 750. The company would save between $250 million and $270 million over 10 years, Khalil said.
After the August IDA meeting, Steve Cirami, general manager of U.S. proxy, corporate actions and global class actions at Broadridge, told Newsday that a decision wasn’t imminent on whether to reduce the company’s Long Island presence.
He also said Broadridge was in talks with New York State about additional incentives and would seek help from the Islip Town IDA.
Emily Mijatovic, a spokeswoman for Empire State Development, the state’s primary business-aid agency, confirmed Wednesday that ESD is “still in discussions” with Broadridge.
John Walser, executive director of the Islip IDA, said the agency hasn’t yet received an aid application “but would be supportive of the company’s efforts to maintain operations and [the] workforce here.”
James T. Madore writes about Long Island business news including the economy, development, and the relationship between government and business. He previously served as Albany bureau chief.
