LPL Financial Holdings Inc. (Nasdaq: LPLA) today announced that its board of directors has terminated the company’s Dan H. Arnold, president and chief executive officer, effective immediately for violating LPL’s commitment to a respectful workplace. He has also resigned from the board.
The board has appointed Rich Steinmeier, currently the company’s managing director, chief growth officer, as interim CEO, also effective immediately.
According to the LPL filing, the board terminated Arnold for cause on the recommendation of a special committee of directors in the course of an investigation by an outside law firm, which found he 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.”
“The board has every confidence in Rich and LPL’s seasoned management team to ensure a smooth and stable transition. As one of the industry’s largest and fastest growing wealth management firms, LPL’s sole focus remains on ensuring its clients have everything they need to support their continued success. The company has significant momentum in the marketplace and its business model and financial strength position it well to continue creating long-term value for clients, employees, and shareholders,” Putnam added.
Steinmeier, age 50, has been LPL Financial has been in his managing director position since May 2024 and served as divisional president of business strategy and growth from August 2018 to April 2024. As chief growth officer, he has led teams responsible for shaping corporate and business line strategy, recruiting new financial advisers and institutions, leading the field management of LPL employee advisers, creating and deploying capital solutions to LPL clients, and leading the marketing and communications functions.
Prior to LPL, Steinmeier held senior leadership roles at UBS Financial and Merrill Lynch, as well as working as a consultant for McKinsey & Company. Steinmeier earned a bachelor’s degree in economics from the Wharton School at the University of Pennsylvania, and an MBA from Stanford University.
LPL Financial Holdings Inc. serves nearly 23,000 financial advisers, including advisers at more than 1,000 enterprises and 580 registered investment adviser firms nationwide. Headquartered in San Diego, its total advisory and brokerage assets totaled $1.56 trillion as of Aug. 30, 2024.
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