LPL Settles With Ex-CEO Arnold for $12M in Stock Options

LPL Financial Holdings Inc. has settled with terminated CEO Dan Arnold for $12 million in stock options, the firm disclosed in a Securities and Exchange Commission filing on Monday.

Arnold was let go by one of the country’s largest independent broker/dealers in October for violating the firm’s “commitment to a respectful workplace” related to statements he made to employees. The filing did not disclose details of Arnold’s actions, and the company has consistently declined to comment.

The settlement amount is about 15% of the total severance benefits and equity awards Arnold would have been entitled to if he had been terminated “without cause,” according to company.

Dan Arnold

LPL had signaled a settlement might be possible shortly after the firing. Rich Steinmeier, formerly LPL’s chief growth officer, briefly served as interim CEO before the board named him to the role full time.

LPL and Arnold agreed on the terms of the settlement on Sunday, according to the filing. According to that agreement, Arnold will retain 47,994 of his non-forfeited options, which have a value of $12 million, calculated using a price per share of $327.56, the closing price of LPL’s common stock on December 6. He will forfeit his remaining 98,432 options and any severance payments he would have been entitled to under his severance plan.

The agreement also releases the company from any general claims by Arnold, and his non-competition and non-solicitation provisions will apply until September 30, 2025.

The initial charges against Arnold were brought by an outside law firm and reviewed by LPL’s board, which decided to terminate the CEO and president of about seven years.