Barrett Business Services (NASDAQ:BBSI) said stockholders approved all proposals presented at its 2026 annual meeting, including the election of nine directors, an amended stock incentive plan, an advisory vote on executive compensation and the ratification of Deloitte & Touche LLP as the company’s independent auditor for 2026.
James Potts, executive vice president, general counsel and corporate secretary, said more than 21.8 million shares, or 88.92% of shares outstanding as of the April 6 record date, were represented in person or by proxy at the meeting. Chairman Joe Clabby declared a quorum and opened voting on the proposals.
Stockholders approve board slate and incentive plan
Stockholders also approved the Second Amended and Restated 2020 Stock Incentive Plan. Clabby said the primary purpose of the amendment was to increase the maximum number of shares of common stock authorized for issuance under the plan from 2.9 million to 4.1 million.
The company’s executive compensation program was approved on a non-binding advisory basis, and stockholders ratified the selection of Deloitte & Touche LLP as the company’s independent registered public accounting firm for 2026. Potts said exact voting results will be reported in a Form 8-K filing with the Securities and Exchange Commission by June 5, 2026.
Chairman cites client growth and operational discipline
Clabby described 2025 as “a year of strong execution and continued progress” for BBSI, saying the company demonstrated the strength of its operating model in a challenging environment for many businesses.
He said management focused on disciplined growth, operational excellence and long-term shareholder value creation. Clabby highlighted growth in client relationships and worksite employee count, while also pointing to strong client retention. He said BBSI’s services continue to resonate as small and medium-sized businesses face increasing complexity in workforce management, compliance, payroll and risk management.
Clabby also emphasized the company’s workers’ compensation and risk management practices, calling them a core strength and an important differentiator in the professional employer organization industry. He said BBSI maintained careful underwriting, claims oversight and operational discipline while supporting profitable growth.
The company continued investing in technology, operational infrastructure and scalability initiatives to improve efficiency and client experience, Clabby said. He added that BBSI maintained a strong balance sheet and healthy liquidity profile, giving it flexibility to invest in strategic initiatives and maintain disciplined capital allocation.
CEO highlights 2025 results and strategic initiatives
President and Chief Executive Officer Gary Kramer said BBSI executed its multi-year strategic plan while delivering “solid operational and financial results” in 2025. He said client feedback remained strong, citing a Net Promoter Score of 68 and strong retention.
Kramer said BBSI Benefits continued to gain traction across markets, including with existing and new clients. He said the product has opened doors in white-collar verticals that the company previously found difficult to penetrate. BBSI ended the January 1 selling season with approximately 800 clients on its plans and more than 24,000 total participants, he said.
Other 2025 highlights cited by Kramer included:
- A 26% increase in active referral partners.
- Record worksite employee additions driven by strategic sales initiatives.
- Expansion into new geographies through an asset-light model, including the conversion of three emerging markets into traditional branches.
- Technology investments in myBBSI, including tools for applicant tracking, onboarding, timekeeping, payroll, 401(k), learning management and performance management.
- A fifth consecutive Great Place to Work designation.
Kramer said gross billings increased 9% in 2025, while earnings per share rose 5% to $2.08. He also said the company paid $8.2 million in dividends and repurchased 4% of its outstanding shares.
Company outlines growth and capital priorities
Looking ahead, Kramer said BBSI is positioned for continued success, citing a de-risked balance sheet, a strong capital position, predictable financials and positive cash flow. He said the company will continue pursuing growth in current and new markets, with existing and new clients, through current and new products, and across existing and new distribution channels.
Kramer said management believes the company can continue making strategic investments while targeting annual average double-digit gross billing growth over a market cycle. He said the leverage in BBSI’s model is expected to result in 1.5 times earnings growth over a market cycle.
On capital allocation, Kramer said BBSI’s priorities remain investments in the company, followed by strategic acquisitions, stock repurchases and supporting the dividend.
Shareholder question focuses on long-term decision-making
During the question-and-answer portion, Potts read a question from shareholder Wayne King, who asked about the core principles guiding BBSI’s long-term decision-making and how those principles remain embedded as the company scales.
Kramer said BBSI’s clients and referral partners are its “North Star,” adding that the company listens actively and designs its work to deliver differentiated products, services and value through local teams. He said BBSI invests in a values-driven culture, focuses on hiring, coaching and training employees, and aligns the organization through incentive compensation plans tied to shared success.
Clabby adjourned the meeting after the preliminary voting results were announced.
About Barrett Business Services (NASDAQ:BBSI)
Barrett Business Services, Inc (NASDAQ: BBSI) is a professional employer organization (PEO) headquartered in Northridge, California. Founded in 1971 by Barrett K. Levesque, the company provides comprehensive human resources outsourcing solutions to small and mid-sized businesses. Through its consultative model, Barrett Business Services helps clients streamline administrative processes, mitigate regulatory risk and focus on core operations.
The company’s core offerings include payroll administration, employee benefits management, workers’ compensation and risk management services.
