LPL Financial, a La Jolla-based investment and wealth management services firm, fired its CEO Dan Arnold on Tuesday for making statements to employees that violated the company’s code of conduct.
The financial services company said an investigation by outside counsel determined that Arnold made statements to employees that violated LPL’s commitment to a respectful workplace. LPL did not offer additional details when contacted by the U-T about the nature of the statements or the law firm that conducted the investigation.
“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 in the announcement. “Mr. Arnold failed to meet these obligations.”
Arnold, 59, had been LPL Financial’s CEO since 2017 and previously served as its chief financial officer for about three years. As chief executive officer, Arnold earned about $16.9 million in 2023, with a majority of his compensation coming from stock awards.
He will not receive severance benefits and forfeits his equity awards because he was terminated with cause. Arnold also resigned from LPL’s board on Tuesday.
The firm appointed Rich Steinmeier, LPL’s managing director and chief growth officer, as its interim CEO. He has been with the company since 2018 and previously held positions at UBS Wealth Management Americas, Bank of America Merrill Lynch and McKinsey & Company.
LPL reported that there will be no changes to Steinmeier’s compensation while he serves as interim chief executive officer. Last year, he was paid about $3.7 million, according to the company’s proxy statement.
The local company touts itself as “the nation’s largest independent broker-dealer” and a leader in offering services to financial advisers. The firm primarily generates revenue from adviser fees and commission.
LPL Financial employed approximately 8,400 people in the U.S. as of Dec. 31, according to its annual report.
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