MEMORANDUM November 8, 2010 To: File No. S7-14-10 (Concept Release on the U.S. Proxy Voting System) From: Zachary S. May Office of Commissioner Luis A. Aguilar Re: Meeting with Representatives of Broadridge Financial Solutions, Inc. On Friday, November 5, 2010, Commissioner Luis A. Aguilar and Zachary S. May, counsel to the Commissioner, met with the following representatives of Broadridge Financial Solutions: Chuck Callan, Brian Clark, Lyell Dampeer, John Gullotta, Michelle Jackson, Bov Kalenka, Mike Mostransky, Bob Schifellite, Marvin Sims, Bruce Weissman, and Jill Whitney. During the meeting, participants discussed, among other things, the Commission’s concept release on the U.S. proxy voting system. The Broadridge representatives provided the following documents: Slide deck: Discussion of Investor Participation Slide deck: NYSE Proxy Fee Advisory Committee Slide deck: Steps Taken to Ensure Vote Accuracy Slide deck: Broadridge Technology Update (copyright material, not attached) Report by Deloitte for Broadridge Financial Solutions Inc., Investor Communication Solutions: Independent Accountant’s Report on Applying Agreed-Upon Procedures Relating to the Company’s Testing of the Accuracy of its Processes and Reporting of Voting Instructions, Three Months Ended May 31, 2010 Report by Deloitte for Broadridge Financial Solutions Inc., Investor Communication Solutions: Independent Accountant’s Report on Applying Agreed-Upon Procedures Relating to the Company’s Testing of the Compliance with Certain SEC and NYSE Proxy Rules, June 30, 2009 Report by Deloitte for Broadridge Financial Solutions Inc., Investor Communication Solutions: Independent Accountant’s Report on Applying Agreed-Upon Procedures Relating to Measurement Criteria, December 29, 2008 – June 26, 2009 Report by Deloitte for Broadridge Financial Solutions Inc., Investor Communication Solutions: Independent Accountant’s Report on Applying Agreed-Upon Procedures Relating to the Reporting of the Stockholder Voting Results for Registered and Beneficial Shareholders, Including the Election of Directors, January 1, 2009 – December 31, 2009 1 Report by Deloitte for Broadridge Investor Communication Solutions, Inc.: Report on Controls Placed in Operation And Tests of Operating Effectiveness Relating to Proxy Services, January 1, 2009 through December 31, 2009 2 o To""" C'\I LO t.- O) .c E 0) > o Z , \ ;/ -'.!' ,I , Estimated Savings to Public Companies from Use of Notice and Access with Beneficial Shareholders ""'3'£:.!~.,· ..S..•.,....:.·...t.·..e.•..'...:.'..a...... O....f.a.J·.'.ffi.;.,.iu..IIset Of. ::~;~pce·.<1~.:.·,.s·.. pr~~ides an . ''',.j~;~Mygnpri1ting and ,'\)1\<: ,.... 'ifl : ";'1 Est. N&A Est. N&A Savings 1363 Savings 1601 Companies* Companies* * Netofservice fees The 2010 unit savings estimate is based on information from NIRI and Broadridge internal data. It includes a medianAnnual Report cost of $ 4.32 per NIRI. and an average actual postage cost per package of$ 1.45 per Broadridge. The 2009 unit savings estimate is based on comparable data from NIRI and Broadridge. • Broadridgtf 1 >,~ ~1;:' '" ';j •tv', '" .".-., " '. .....:'::"i::~~"(..~~~..\-:.•.:·...:"~·::rr:.~~::-:.:::~:':'~".T' Companies Using Notice and Access Retail Voting Response by Distribution Method by Shares %Shares Voted • LastYear(7/1/08-6/30/09) • CurrentYear(7/1/09-6/30/10) 100% 90% _--_._----_._---------_._------_. .. 80% 700/0 60% 50% 40% 30% 20% •••~....._._.._.,"w.,•.~._,~,....,••'•••,"~~_._~__ 10% o 15.28% 18.12% NoticeRecipients FullPackage FullPackageby FullPackageby TotalActualRetail TotalActualReturns TotalQuorum byConsent Fulfillment Stratification Returns - AllShareholders Shareholderswho Shareholderswho Shareholders who Shareholderswho Actualretailvote Actualvoteinstructions Allsharesvoted receivedanoticeonly previouslyrequestedto receivedanoticeand receivedfullpackage instructionsreceived receivedfromall Includingbrokervote alwaysreceivefull requestedfullpackage materialsbecausethe shareholders packagematerials materials issuerchosetosendfull packagematerialstoa subsetofshareholders • Broadridge" 2 ~ .t:~ , ~.' I" ~.~".~ i ,:.~, -;; ,',-I'""',w·V,;,"?-".',.;",;,:~~,."..·'·~":;":."i· Companies NOT Using Notice and Access Retail Voting Response Ok Accounts Voted %Shares Voted -----_._._---_._-----------, ~-------------------.-------:1 : 100%..------.-....-..-.---.....--.------.--.-----.-.. 100 % . .__..__ 90~° -_ __.._----_._-----_._-----_..__ I 90% ...-..-----.---..---....-......--...-..-.-.---......-.-..----.....-.-----.-_I.! 80% 80% 70% 70% I _·.. •._..._._..._.._·_"_·A_. .·_. H_._._...__.__ . ..._._._..._._.._, .- ii ,··~_._ ~_. 60% ! 60% - ( 50% 50% I - 40% 40% 30% 30% 20% 20% 10% 24.02'1" 10% 19.39% 22.65% o 1921Col, o TotalActualRetail TotalActualReturns TotalActualRetail TotalActualReturns TotalQuorum Returns - All Shareholders Returns - All Shareholders , I Actualretailvote Actualvoteinstructions i Actualretailvote Actualvoteinstructions Allsharesvoted instructionsreceived receivedfromall f instructionsreceived receivedfromall includingbrokervote ! shareholders I shareholders I I ___________ .---1 L....-.. ._.. • LastYear(7/1/08-6/30/09) Broadridg~f • CurrentYear(7/1/09-6/30/10) • 3 _."-'-.".?::~~i' "~TCX.:;::;:~.~.~~~~.~;~::::'.~ir; Companies Using Notice and Access Retail Vote Response by Distribution Method by Accounts 0/0 Accounts Voted • LastYear(7/1/08-6/30/09) • CurrentYear(7/1/09-6/30/10) r i 100 % ----.------------------------ 90 % ----.-.--.... 180 % ---------..--.-.---------------.-------------.--------------------.----.-----.----..-.--.-.-..- .....--.-.•.- i i70% ------.------ I 1600/0-.----- --- ! 150% I ----------.--------..---..----.----.....-----...--.-----..--.-....--- i 140% _______ ___ A .. __.__.__."._..· . __._ .~_ ~ _~,~ .~_.H i 300/0 .--------- 1 1200/0 .-_. = - - - - - - - 110% =.... ....... .....-.. .. .........-..-_._-_._._._....._-........-.......-_._---_.._--_.__._----_._--- ···..·-·4:03%"··_·4.58% iO NoticeRecipients FullPackage FUllPackageby FullPackageby TotalActualRetail TotalActualReturns byConsent Fulfillment Stratification Returns - All Shareholders Shareholderswho Shareholderswho Shareholders who Shareholderswho Actualretailvote Actualvoteinstructions receivedanoticeonly previouslyrequestedto receivedanoticeand receivedfullpackage instructionsreceived receivedfromall alwaysreceivefull requestedfullpackage materialsbecausethe shareholders packagematerials materials issuerchosetosendfull packagematerialstoa subsetofshareholders _._-----_._----_. • Broadridge" 4 :," F" """.~..~.:.:-.,:/'If:':.1::";-""":":~....:~'~:"~;"'..~.::;"~/'~f.' Comprehensivesiteaboutthe I Low I Complete mechanicsofproxy voting I Unbiased explanation of the Notice & Low !comPlete Access process I Online participation and voting atthe Low fcomp,ete meeting Interactive proxystatementswith links Medium Draftopen-sourcecode donatedto XBRL U.S. tovoting Standing voting instructionsfor retail Medium Discussionswith interested parties investors, akinto some institutional voting Private label communications portal on Medium Madeavailable to over14million accounts. Integrated brokers'websites with accountpreferences I Secure, two-waycommunicationswith I High Potentialforsystemicchange in shareholder and amongvalidated shareowners engagementand participation • Broadridge" 5 :·::·7>··:·:::~·;..:.~·"~·;"·:":·;7"~:·'~~·:.'!.•;: Investor Mailbox Account-specific presentation of investorcommunications on brokerage website. Regulatory and non-regulatorycommunications: • Proxy statements, linked to secure voting site • Interim and regulatory documents • Reorg notices • Statements, trade confirmations, tax forms • Prospectuses Currently available to over 14 million accounts. Discussions with large broker-dealers representing approximately40 million accounts Does not replace current "default"distributions to shareowners. Provides an additional access portal to view shareowner material and to vote ifapplicable. An improved online value proposition. Significant increase in "consents" to e-delivery, e.g.: Broker1 Broker2 Wo;gg:. 937,349 000000 16,000 \00:000 14,000 BOO,OOO ,_,', _, 12,000 10,000 8,000 500,000 360;48 :,".""', 6,000 "'0.000 •.• .• •• • ~ 4,000 ,'1""0000,e:000P00~00~0000<','0~,)'If.i:...'<;:>."«q1I:(.)\~'Ii!:•(~..\~sf~A'~_...'I>"'"'.<"\~'Sf:.~''\ ,)'S~, ~'Srf,,~coo<;[ oG<'f}~o.f,'<:f'J>, ,'".'"",0 2e,0l0'"0o,0.~~')'1><~' «q1~~'I><:~ or.<f~~'b"",~ ')~<'~ ')~~~.;§&~c.:;0<;[~oG'~~o""~'V0~ ~'I><:'~«q1~ • Broadridge" 6 '_;,-r \~)'''J~~. ;<".\~ '.'1':- I 'J..... ...':.::•...;,.::::-... ".:;"~'~~"..... The Shareholder Forum Provides Multiple Ways to Engage Stockholders. @company • Viewyourshareawnermaterialbychoosingtheoplonbelow • Vote bychoosingtheoptionbelaworvotebyphoneat1-BOG->OO<-x>¢<){ • Requestmaterialtobesent10\OUbyemaHorhardcopyatnochargebychoosing!heoptionbelaw • SignuptoreceiltefuiJreshareholdermaterials\liae-mailortraditionalmail DownloadAdmeAcrobat-'lbumayneedAdO~:Aaobatto ~ewthe documentslistedmove. ©200B8roadridgeFinancialSolutions,Inc.8roadridgeandthe8roadridgelogoaretrademarks of8roadridgeFinantcialSolutions,Inc. PrivacyPolicy ITermsandCond~ions • Broadridge 7