LPL Financial Terminates CEO Dan Arnold Over Alleged Misconduct
The $17 billion financial firm fired chief executive Dan Arnold for allegedly violating the company’s code of conduct.
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Chief executive Dan Arnold is out at LPL Financial.
The country’s largest independent broker dealer terminated Arnold from his position as CEO on Tuesday for allegedly violating the company’s code of conduct, according to a filing. The decision was made by its Board of Directors after an investigation by an outside counsel determined he “made statements to employees” that violated LPL’s rules. Arnold also resigned his position on the board.
“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,” LPL board chair James Putnam said in the filing. “Mr. Arnold failed to meet these obligations.”
Rich Steinmeier, who became the company’s chief growth officer in May, has been appointed to the role of interim chief. LPL, which employs some 23,500 brokers managing around $1.5 trillion in assets, did not respond to a request for comment.
Left the Building
The abrupt firing of a chief executive is a rare occurrence in the wealth management world, where succession plans are typically laid out years in advance.
In 2023, Arnold received almost $17 million in compensation, including a roughly $950,000 base salary and about $12 million in stock awards, according to a separate SEC filing in March. Because of his termination, Arnold is not entitled to severance benefits, and his outstanding equity awards, whether vested or unvested, are also subject to automatic forfeiture, per the latest filing.
Long Tenure: Arnold had been with LPL for almost 20 years, according to his LinkedIn profile. He took took up the role of CEO in 2017:
- While there, he helped transform the company into a leader among wealth managers, expanding its pool of advisors and growing the firm’s AUM. LPL’s stock price rose roughly 540% since he took over in January 2017.
- Just last month, LPL announced it will acquire The Investment Center, a New Jersey-based broker-dealer and RIA with 240 advisors and nearly $9 billion in assets.
The company’s stock price dropped after markets closed Tuesday, but has since regained much of the losses.