LPL Financial, the independent broker-dealer with over 23,000 advisors, fired its CEO, Dan Arnold, on October 1, 2024, for violating the company’s code of conduct. An investigation by an outside law firm found that Arnold made statements to employees that breached LPL’s respectful workplace policies. James Putnam, chair of the board of directors, stated, “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. Mr. Arnold failed to meet these obligations.”
According to an SEC filing, Arnold will not receive severance benefits, and his outstanding equity awards, both vested and unvested, will be automatically forfeited. Following the announcement, LPL’s stock price dropped by nearly 5% in after-hours trading. Effective immediately, Rich Steinmeier, LPL’s chief growth officer, has been appointed interim CEO.
Steinmeier joined LPL in 2018 from UBS and was promoted to chief growth officer in May 2024.
LPL Financial leadership changes
Arnold’s termination comes at a challenging time for LPL, which is facing a class-action lawsuit over its cash sweep policy and a lawsuit from rival Ameriprise Financial regarding recruiting tactics.
Despite these issues, under Arnold’s leadership since 2017, LPL’s brokerage and advisory assets nearly tripled to $1.5 trillion, and the company’s stock price increased sixfold. Industry analysts at Citizens JMP Securities noted that Arnold was generally well-liked internally and led the business through significant growth. However, tensions may have been brewing, as indicated during LPL’s July quarterly earnings call when Arnold mentioned that some partner firms were “strategically misaligned” with LPL’s mission.
Arnold joined LPL in 2007 after the company acquired UVEST Financial Services, where he served as president and chief operating officer. He became LPL’s CFO in 2012, president in 2015, and CEO in 2017. LPL’s board has expressed confidence in Steinmeier and the company’s management team to ensure a smooth transition.
The company also announced the closure of its acquisition of Atria Wealth Solutions. It expects to retain 80% of Atria advisors, and onboarding will be complete by mid-2025.
