LPL Terminates CEO Arnold for Violating “Respectful Workplace” Rules
Dan Arnold is out effective immediately for statements made to employees that ran afoul of policy; Rich Steinmeier, chief growth officer, is stepping in as interim head.
LPL Financial Holdings Inc., one of the country’s largest independent broker/dealers, terminated CEO Dan Arnold on Tuesday for violating the firm’s “commitment to a respectful workplace.”
Rich Steinmeier, currently the company’s managing director, chief growth officer, has been tapped as interim CEO by the firm’s Board of Directors.
The Board terminated Arnold on recommendation of a special committee investigating allegations brought by an outside law firm. That committee found cause to believe Arnold made statements to employees that violated LPL’s code of conduct, according to the announcement.
Dan Arnold
“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,” James Putnam, chair of the board of directors, said in a statement. “Mr. Arnold failed to meet these obligations.”
LPL declined to comment beyond the announcement.
Arnold had been CEO and president since January 2017, after being president since March 2015. Before that, he was LPL’s chief financial officer, and had been with the firm since 2007.
Interim CEO Steinmeier and the rest of the management team will now be tasked with answering questions about the termination, continuing ongoing business and starting the planning for a new CEO.
“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,” Palmer said.
Rich Steinmeier
Steinmeier, 50, has been in his current role as of May 2024. Before that, he served as divisional president, business strategy and growth, since April 2018. As chief growth officer, he led 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.
The CEO news comes after LPL on Tuesday also announced the closure of a previously announced deal to acquire Atria Wealth Management Solutions Inc., a $100 billion brokerage and advisory.
LPL serves more than 23,000 financial advisers, including advisers at about 1,000 institutions and 580 registered investment adviser firms.