LPL Financial Holdings Inc. announced the termination of CEO Dan Arnold for cause due to a breach of the company’s respectful workplace agreement.
Rich Steinmeier, who has been serving as Chief Growth Officer since May, will assume the role of interim CEO.
The decision followed an investigation conducted by an external law firm, which concluded that Arnold had made statements to employees that contravened LPL’s Code of Conduct. In a statement, Chair James Putnam emphasized the company’s commitment to maintaining a professional and supportive workplace for all employees, noting that Arnold failed to uphold these standards.
As a result of his dismissal, Arnold will not receive severance benefits, and his outstanding equity awards, whether vested or unvested, will be automatically forfeited. Arnold has also resigned from LPL’s board of directors.
Steinmeier, 50, joined LPL in 2018 and has previously held significant roles in business strategy and growth. His compensation will remain unchanged during his tenure as interim CEO.
LPL Financial serves over 23,000 financial advisers, including those at approximately 1,000 institutions and around 580 registered investment-adviser firms across the United States. Following the announcement, LPL shares experienced a decline, dropping 5% to $218.12 in after-hours trading.
Bloomberg, Reuters, Market Watch contributed to this report.
