(Dow Jones) LPL Investment Holdings Inc., the parent of independent broker-dealer LPL Financial Corp., has agreed to renew Chairman and Chief Executive Mark Casady's employment contract for at least five more years.

The agreement will be effective on the close of the company's proposed initial public offering, and Casady's employment will renew automatically each year, according to a filing by LPL made with the Securities and Exchange Commission Thursday. LPL is one of the nation's largest independent broker-dealers.

InvestmentNews earlier reported the agreement.

Terms of Casady's annual compensation, including stock options and other equity awards, will be consistent with past practices, the filing says. Casady, 49, joined LPL in May 2002, became president in April 2003 and CEO and chairman of the board in December 2005. For the year ended Dec. 31, 2009, he received total compensation of $3.73 million, including salary of $800,000, a bonus of $1.5 million and option awards of $1.41 million, according to a June 4 filing the company made with regulators. Over the past three years, Casady has been compensated more than $8.57 million, including salary, bonuses, option awards and other compensation, according to that filing.

Casady's severance benefits will vary depending on the reason for termination, according to the filing made Thursday.

As of March 31, LPL had 12,026 advisers and advisory and brokerage assets of $285 billion.

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