LPL Financial has reached a settlement with former president and CEO Dan Arnold, who was fired over allegations of workplace misconduct.
According to a Form 8-K filed with the Securities and Exchange Commission (SEC), Arnold will retain 47,994 stock options with a price per share of $327.56, the closing price of LPL’s stock on December 6, for a total value of $12 million. He will forfeit just over 98,000 in stock options and has signed non-solicitation and non-compete agreements that will remain in effect until September 30, 2025. As part of the settlement, Arnold has also agreed to not criticize the firm and will renounce any general claims made against LPL.
Arnold’s retained stock options are nearly 15% of what he would have earned through severance benefits and equity awards if he had been terminated by LPL without cause or “for good reason.”
Arnold was let go by the nation’s largest broker-dealer on October 1 “for cause,” after the company stated he had violated its conduct guidelines to a respectful workplace. LPL had worked with an outside law firm that was investigating misconduct allegations against Arnold and fired him after a recommendation was made from a special committee of directors.
In addition to his firing, Arnold also resigned from the company’s board.
“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.”
LPL’s board appointed its former managing director and chief growth officer Rich Steinmeier as its interim chief executive officer. Later that month, LPL named Steinmeier has its permanent CEO.
Along with his previous role, Steinmeier served as divisional president for business strategy and growth at LPL between August 2018 to April 2024. Before his work at the company, Steinmeier held roles at UBS Financial and Merrill Lynch, and worked as a consultant for McKinsey & Company.
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LPL CEO Fired Over Workplace Misconduct
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.
