LPL Financial, the independent broker/dealer with more than 23,000 advisers, said its board of directors has fired President and CEO Dan Arnold for violating the company's respectful workplace policies. He has also resigned from the board. Rich Steinmeier, managing director and chief economic growth officer, will serve as interim CEO, effective immediately.
In a statement, LPL said Arnold was terminated for cause after an investigation by an outside law firm found that “he made statements to employees that violated LPL's Code of Conduct.”
“LPL's Code of Conduct requires every employee, regardless of title, to foster a supportive and professional workplace and to show respect for each other, our stakeholders and the wider community,” said James Putnam, chairman of board of directors. “Mr. Arnold did not fulfill these obligations.”
An SEC filing says Arnold is not entitled to receive employment benefits and that his outstanding equity awards, whether vested or not, are subject to automatic forfeiture. The company's share price fell nearly 5% in after-hours trading.
Arnold joined LPL in 2007 after spending 12 years leading UVEST, a broker/dealer that was acquired by LPL, as a division president of LPL's institutional services business. He was appointed CEO of the company in 2016when then-Chairman and CEO Mark Casady announced his retirement. During his tenure, LPL's total return to shareholders was 537%.
He led the LPL through several changes, including acquisitions of National Planning Holdingscrown capital securities, Boenning & Scattergoodto name a few. LPL also announced on Tuesday that it closed the acquisition of Atria Wealth Solutions. The firm expects to retain 80% of Atria's advisors, with onboarding to be completed in mid-2025.
Rich Steinmeier joined LPL in 2018 as managing director and chief business development officer. He was previously managing director and chief digital officer at UBS Wealth Management USA. Steinmeier, 50, was promoted to the growth chief in May 2024.
Arnold did not immediately respond to a request for comment.