LPL fires CEO for allegedly breaking respectful-workplace rules

By Steve Gelsi

Financial advisory firm says its chief executive allegedly violated its respectful workplace rules

LPL Financial Holdings Inc.'s stock was down fractionally while other financial stocks rose Wednesday after the company said it fired Dan H. Arnold as chief executive for allegedly violating the money-manager's respectful-workplace rules.

LPL Financial's (LPLA) Chairman James Putnam said Arnold "failed to meet" the company's code of conduct that "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."

Arnold has also resigned from the broker and financial advisor's board of directors.

LPL Financial's stock fell 0.1%, while the Financial Select SPDR ETF XLF rose 0.1% and the KBW Nasdaq Bank Index BKX moved up by 0.7%

Rich Steinmeier was named interim chief executive after working as managing director and growth chief at LPL Financial since May. Prior to that position, Steinmeier divisional president, business strategy and growth starting in 2018.

The company did not provide a timeline for finding a permanent replacement for Arnold, who had been chief executive of the company since 2017, according to his LinkedIn page. He had worked as financial chief of the company starting in 2012 and a managing director and divisional president starting in 2006.

Prior to Wednesday's moves, LPL Financial's stock is down 1% so far in 2024, compared to a 19.7% rise by the S&P 500 SPX.

-Steve Gelsi

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10-02-24 1017ET

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