-- Fair market value stock options, where the exercise price of one-third
of the options granted in any year equals the closing price of the
Company's stock on the date of grant.
-- Premium-priced stock options, where the exercise price of one-third of
the options granted in any year is 10% higher than the closing price of the
Company's stock on the date of the grant.
-- Super Premium-priced stock options, where the exercise price of one-
third of the options granted in any year is 20% higher than the closing
price of the Company's stock on the date of the grant.
-- The first stock option grant will vest during fiscal year 2008 and
will expire 10 years from the date of grant, subject to earlier expiration
upon the occurrence of certain events.
The first of these grants totaling 2,000,000 shares underlying options was
approved by the Committee on February 25, 2008, comprised of 666,662 fair
market value stock options at an exercise price of $18.97 per share
(closing price of stock on grant date), 666,667 premium-priced stock
options at an exercise price of $20.87 per share (110% of fair market value
stock options), and 666,671 super premium-priced stock options at an
exercise price of $22.76 per share (120% of fair market value options).
In addition to the long-term ownership goal stated above, the Committee is
in the process of determining appropriate share ownership guidelines so
that, following the vesting of these grants, corporate officers will own an
adequate amount of Company shares to keep their individual interests
aligned with those of the Company's stockholders.
Impact of Founder Equity Grants on Fiscal Year 2008 Financial Guidance
Despite a higher stock compensation expense associated with the issuance of
founder equity grants, there is no change to the fiscal year 2008 financial
guidance communicated in the Company's earnings release of February 7,
2008, for the second quarter ended December 31, 2007. The fiscal year 2008
financial guidance continues to be as follows: 1% - 4% revenue growth, and
earnings per share before one-time transition expenses towards the higher
end of the $1.30 - $1.40 per share range, based on diluted weighted average
shares outstanding of approximately 141 million shares.
About Broadridge
Broadridge Financial Solutions, Inc., with over $2.0 billion in revenues
and more than 40 years of experience, is a leading global provider of
technology-based outsourcing solutions to the financial services industry.
Our systems and services include investor communication, securities
processing, and clearing and outsourcing solutions. We offer advanced,
integrated systems and services that are dependable, scalable and
cost-efficient. Our systems help reduce the need for clients to make
significant capital investments in operations infrastructure, thereby
allowing them to increase their focus on core business activities. For more
information about Broadridge, please visit www.broadridge.com.
Forward-Looking Statements
This press release and other written or oral statements made from time to
time by representatives of Broadridge may contain "forward-looking
statements" within the meaning of the Private Securities Litigation Reform
Act of 1995. Statements that are not historical in nature, such as our
fiscal 2008 financial guidance, and which may be identified by the use of
words like "expects," "assumes," "projects," "anticipates," "estimates,"
"we believe," "could be" and other words of similar meaning, are
forward-looking statements. These statements are based on management's
expectations and assumptions and are subject to risks and uncertainties
that may cause actual results to differ materially from those expressed.
These risks and uncertainties include those risk factors discussed in Part
I, "Item 1A. Risk Factors" of our Annual Report on Form 10-K for the fiscal
year ended June 30, 2007 (the "2007 Annual Report"). Any forward-looking
statements are qualified in their entirety by reference to the factors
discussed in the 2007 Annual Report. These risks include: Broadridge's
success in retaining and selling additional services to its existing
clients and obtaining new clients; the pricing of Broadridge's products and
services; changes in laws affecting the investor communication services
provided by Broadridge; changes in laws regulating registered clearing
agencies and broker-dealers; declines in trading volume, market prices,
liquidity of securities markets or proprietary trading activity;
Broadridge's ability to continue to obtain data center services from its
former parent company, Automatic Data Processing, Inc. ("ADP");
Broadridge's debt levels and financing costs, including the impact of its
credit ratings on such costs; the ability of Broadridge to develop brand
recognition and its reputation with its clients and employees following its
separation from ADP in March 2007; the incurrence of additional costs
attributable to Broadridge's operations as a stand-alone public company;
Broadridge's ability to continue to obtain transitional services from ADP
for up to one year from the date of Broadridge's March 2007 spin-off from
ADP; changes in technology; availability of skilled technical employees;
the impact of new acquisitions and divestitures; competitive conditions;
and overall market and economic conditions.
Broadridge disclaims any obligation to update any forward-looking
statements, whether as a result of new information, future events or
otherwise.
Contact Information: Contact Information Investors: Marvin Sims Broadridge Financial Solutions, Inc. Vice President, Investor Relations (516) 472-5477