LPL Financial, one of the nation’s largest broker-dealers, fired President and CEO Dan H. Arnold on Tuesday for violating the company’s conduct guidelines to a respectful workplace.
Arnold has also resigned from the company’s board.
According to a company statement, the board fired Arnold “for cause,” following a recommendation from a special committee of directors investigating misconduct allegations against Arnold. The investigation by the outside law firm found that Arnold had made statements to employees that violated LPL’s Code of Conduct.
“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.”
Arnold is not entitled to receive severance benefits and will have to forfeit “a portion” of his outstanding equity awards, according to a filing by the Securities and Exchange Commission (SEC).
LPL’s board has since appointed its Managing Director and Chief Growth Officer Rich Steinmeier as its interim CEO, effectively immediately. Steinmeier, 50, has worked in his current role since May, and prior to that, served as divisional president for business strategy and growth from August 2018 to April 2024.
“The Board has every confidence in Rich and LPL’s seasoned management team to ensure a smooth and stable transition,” added Putnam.
Before working at LPL, Steinmeier held roles at UBS Financial and Merrill Lynch, and worked as a consultant for McKinsey & Company.
LPL today works with over 23,000 financial advisors, including advisors at 1,000 institutions and 580 registered investment advisor firms nationwide.
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