La Jolla-based LPL Financial fires CEO for violating company code of conduct – San Diego Union-Tribune

LPL Financial, a La Jolla-based investment services and wealth management 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 found that Arnold made statements to employees that violated LPL’s commitment to respect in the workplace. LPL did not provide additional details when contacted by UT about the nature of the statements or the law firm that conducted the investigation.

“The LPL Code of Conduct requires every employee, regardless of title, to create a supportive and professional workplace and demonstrate respect for each other, our stakeholders and the broader community,” James Putnam, CEO, said in the announcement. “Mr. Arnold failed to fulfill these obligations.”

Arnold, 59, had been CEO of LPL Financial since 2017 and previously served as CFO for about three years. As CEO, Arnold earned approximately $16.9 million in 2023, with most of his compensation coming from stock awards.

He will not receive severance pay and will forfeit equity awards due to termination of employment for cause. On Tuesday, Arnold also resigned from the LPL board.

The company has named Rich Steinmeier, LPL’s managing director and chief development 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 said Steinmeier’s compensation will not change while he serves as interim CEO. He received compensation of about $3.7 million last year, according to a company attorney’s statement.

The local company bills itself as “the nation’s largest independent broker-dealer” and a leader in offering services to financial advisors. The company generates revenue mainly from advisory fees and commissions.

LPL Financial employed approximately 8,400 people in the U.S. as of Dec. 31, according to its annual report.

Originally published: October 2, 2024 at 15:11