LPL Financial Holdings announced that it named Interim CEO Rich Steinmeier as permanent CEO, effective immediately. The announcement came three weeks after it suddenly terminated Dan Arnold, its CEO since 2017, for allegedly violating its respectful workplace policy.
The nation's largest independent broker-dealer said on October 1 that an outside law firm had determined Arnold had violated its code of conduct by making certain statements to employees. LPL did not specify what those statements were.
LPL also announced that its chief financial officer, Matt Audette, was given the additional title of president.
Jim Putnam, chair of the LPL Financial Board of Directors, said iin a prepared statement that LPL's organic growth rate had doubled since Steinmeier joined the company in 2018. “LPL is fortunate to benefit from an exceptionally strong team with leaders who have a clear vision for the continued success of the business,” Putnam said.
Earlier this year, Steinmeier was promoted to chief growth officer, though he had led much of the firms's recruiting and growth initiatives since 2018. He was previously divisional president for business strategy and growth.
"Rich’s appointment to CEO, which reflects the board’s succession plan, is a testament to the valuable contributions he has made during his tenure with LPL and the trusted relationships he has established with clients and employees,” added Putnam. “With Rich as CEO and Matt in his expanded role as president, the board is confident that LPL’s trajectory of high performance and its steadfast commitment to serving clients will continue to build stakeholder value."
Under the leadership of Arnold and Steinmeier, LPL managed to expand its network of advisors at a much faster than the rest of the IBD industry. Its stock appreciated nearly sixfold since early 2017. With Steinmeier at the helm, LPL is expected to continue its intensely aggressive recruiting strategy, which has prompted pushback from competitors, including Ameriprise, which recently sued LPL and a former Ameriprise rep who jumped to the giant firm for alleged client poaching.
"The success of LPL is shaped by the clear-eyed view from our talented team that all Americans deserve access to sound financial advice. It is an incredible honor to lead the company that delivers on this purpose,” said Steinmeier. “I’m fortunate to collaborate with Matt and our leadership team to elevate our service to clients, provide rewarding careers for our people, and to build on our momentum as one of the fastest growing companies in wealth management.”