LPL Financial Holdings Inc. today announced that the board of directors has fired the company’s President and Chief Executive Officer, Dan H. Arnold, effective immediately, for violating LPL’s commitment to a respectful workplace. 

Arnold was terminated for cause on the recommendation of a special committee of directors after an investigation by an outside law firm. The special committee determined he made statements to employees that violated LPL’s code of conduct.

Rich Steinmeier, divisional president and chief growth officer, was named interim CEO, effective immediately.
 
Arnold, who had served as LPL CEO since 2016 and led the firm to realize an unprecedented increase in shareholder value, has also resigned from the board. In April, 2024, LPL revealed that it gave Arnold a 23% raise to just under $17 million in total compensation. In an SEC filing today, LPL said Arnold was not eligible for severance or certain stock awards including unvested options.
 
When he replaced former CEO Mark Casady in 2016, LPL was already the nation's largest independent brokerage firm. However, it had struggled for several years and been plagued by executive turnover following a successful IPO in 2010.
 
Under Arnold's leadership, LPL's shares appreciated approximately sixfold from the high $20s to about $229 a share at today's closing. The shares were down 4.7% to $219 a share in after-hours trading. Sources close to institutional shareholders said investors might find the firm's explanation of his termination to be insufficient.

In recent years, the giant IBD had emerged as the industry's most aggressive recruiter and acquirer. Only yesterday, it announced it had completed the acquisition of Atria Wealth Solutions, a transaction for which it paid an estimated $900 million. 

“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,” said James Putnam, Chair of the Board of Directors. “Mr. Arnold failed to meet these obligations.”

“The board has every confidence in Rich and LPL’s seasoned management team to ensure a smooth and stable transition. As one of the industry’s largest and fastest growing wealth management firms, LPL’s sole focus remains on ensuring its clients have everything they need to support their continued success. The company has significant momentum in the marketplace and its business model and financial strength position it well to continue creating long-term value for clients, employees and shareholders.”

Steinmeier, 50, has been LPL Financial’s managing director, chief growth officer since May 2024. He was divisional president, business strategy and growth from August 2018 to April 2024. Steinmeier has led teams responsible for recruiting and shaping corporate and business line strategy, the field management of LPL employee advisors, creating and deploying capital solutions to LPL clients, and leading the marketing and communications functions.

Prior to LPL, Steinmeier held senior leadership roles at UBS Financial and Merrill Lynch as well as working as a consultant for McKinsey & Company, according to the announcement. Steinmeier earned a B.S. in economics from the Wharton School at the University of Pennsylvania and an M.B.A. from Stanford University.