LPL Financial, an independent broker-dealer with a network of over 23,000 advisors, has terminated its CEO, Dan Arnold, effective October 1, 2024, due to breaches of the company’s code of conduct. An investigation by an external law firm revealed that Arnold had made comments to employees that violated LPL’s policies on maintaining a respectful workplace. James Putnam, chair of the board of directors, remarked, “Every employee at LPL, regardless of title, is expected to cultivate a supportive and professional work environment while respecting one another, our stakeholders, and the community at large. Mr.
Arnold did not fulfill these responsibilities.”
As per an SEC filing, Arnold will not be entitled to any severance pay, and all his outstanding equity awards will be forfeited—both those that are vested and unvested. Following this news, LPL’s stock experienced a decline of nearly 5% in after-hours trading. Rich Steinmeier, the chief growth officer of LPL, has been named interim CEO, effective immediately.
Steinmeier has been with LPL since 2018, having transitioned from UBS, and was elevated to the role of chief growth officer in May 2024.
Changes in LPL Financial Leadership
The dismissal of Arnold occurs during a turbulent time for LPL, as the firm is contending with a class-action lawsuit concerning its cash sweep policy, in addition to another lawsuit from competing firm Ameriprise Financial over recruitment strategies.
Despite these challenges, under Arnold’s tenure since 2017, LPL’s brokerage and advisory assets have nearly tripled, reaching $1.5 trillion, while the company’s stock value soared sixfold. Analysts at Citizens JMP Securities noted that Arnold was generally well-regarded within the firm and led substantial business growth. Nonetheless, there were signs of tension, particularly highlighted during LPL’s July quarterly earnings call where Arnold pointed out that certain partner firms were “strategically misaligned” with LPL’s objectives.
Arnold began his career with LPL in 2007 following the acquisition of UVEST Financial Services, where he held the roles of president and chief operating officer. He became LPL’s CFO in 2012, was promoted to president in 2015, and ascended to CEO in 2017. The board has voiced its confidence in Steinmeier and the management team to facilitate a seamless transition.
The company has also reported the successful closure of its acquisition of Atria Wealth Solutions, with expectations to retain 80% of Atria’s advisors, aiming for onboarding to be completed by mid-2025.
