State aid will help keep Broadridge Financial Solutions on Long Island, preserve thousands of jobs

Broadridge Financial Solutions Inc., one of Long Island’s largest employers, is investing nearly $80 million in its local operations and retaining 2,200 jobs statewide rather than moving work out of state, Gov. Kathy Hochul announced.

In return for Broadridge's recommitment to staying in the metropolitan area, the public company will receive nearly $40 million in state grants and tax credits, she said.

Broadridge had considered closing one of four factories in Edgewood, a neighborhood in Islip Town, and its Lake Success headquarters to save up to $270 million over 10 years. The plan would have reduced the company’s workforce in New York State to about 750 employees, according to an application for tax incentives from Suffolk County last year.

Broadridge had considered transferring work and jobs to California, Connecticut, Florida, Tennessee and Texas, where it also has facilities, the application states.

Tim Gokey, the company's CEO, who made Tuesday's announcement with Hochul, said the incentives from Empire State Development, the state’s primary economic development agency, are “ensuring that our New York associates can continue to play a key role in driving innovation across financial services.”

Broadridge 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. Besides its local operations, the fast-growing company has offices in Manhattan, Europe, Asia and Australia.

Securities filings show Broadridge reported a profit of $839.5 million for the year ended June 30 on revenue of $6.9 billion.

Hochul said Tuesday that Broadridge will establish an “innovation partnership” with Stony Brook University focused on artificial intelligence research and workforce development.

"We competed for these jobs, we secured them and we’re anchoring them here for the long term,” the governor said in announcing the deal. “Each one of these jobs will support families, local businesses and communities — this is exactly how we grow our economy."

The state assistance consists of grants totaling $38.5 million and up to $1.5 million in state tax credits. In return, the company will spend $78 million on construction and equipment purchases over 10 years, state officials said.

Tuesday’s announcement follows a decision by the Suffolk County Industrial Development Agency in October to award Broadridge $17 million in tax breaks over 12 years.

In return, the company pledged to spend tens of millions of dollars on improvements to 51 Mercedes Way and 1155 Long Island Ave., both in Edgewood, plus retain the 1,531 employees that are assigned there. The jobs pay, on average, $111,353 per year, according to the application for IDA aid.

Kelly Murphy, the IDA’s chief executive and executive director, said Broadridge had employed 168 people in the two Edgewood buildings when it first sought tax breaks in 1997. The buildings now have more than 1,500 workers.

“This company could absolutely operate anywhere else in the country, but we want them to stay in Suffolk County because of the jobs, the spending and the overall positive impact on the economy,” she told Newsday in October.

Broadridge was started by Richard J. Daly in 1987 in the back bedroom of an East Northport house. He now serves on the board of directors as executive chairman.

By James T. Madore

james.madore@newsday.comJamesTMadore

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.