LPL Financial, the nation’s largest independent broker-dealer, has fired President and CEO Dan Arnold for workplace misconduct, according to a statement on Tuesday.
The company’s Board of Directors terminated Arnold based on the recommendation of a special committee which found through an investigation by an outside law firm that he had “made statements to employees that violated LPL’s code of conduct,” according to the announcement.
“LPL’s Code of Conduct requires every employee, no matter their title, to foster a supportive and professional workplace and show respect to each other, our stakeholders and the broader community,” James Putnam, chair of the Board, said in a statement. “Mr. Arnold failed to meet these obligations.”
Rich Steinmeier, who has been chief growth officer, is taking over as interim CEO, LPL said. Steinmeier, 50, joined LPL from UBS Wealth Management USA in 2018.
LPL bumped Arnold’s pay 23% last year to $16.9 million. He is not entitled to severance and must forfeit a portion of outstanding equity awards, according to a Securities and Exchange Commission filing accompanying the announcement. LPL’s board opted to defer the automatic forfeiture of “a portion” of his vested options as part of a settlement negotiation, according to the filing.
Arnold, who started his career at LPL predecessor Uvest Financial in 1997, became LPL’s CFO in 2012, was named president in 2015 and succeeded Mark Casady as CEO in 2017.
LPL has almost 23,500 brokers managing around $1.5 trillion in assets. Its stock was down nearly 5% in after-hours trading.
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