LPL Fires CEO for Violating Respectful-Workplace Agreement

(Bloomberg) -- LPL Financial Holdings Inc. said it fired Chief Executive Officer Dan Arnold for violating an agreement to maintain a respectful workplace, and that Chief Growth Officer Rich Steinmeier will step into the role on an interim basis.

The wealth-management company said an outside law firm investigated the circumstances and found Arnold “made statements to employees that violated LPL’s Code of Conduct,” according to a statement Tuesday.

“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,” Chair James Putnam said in the statement. “Mr. Arnold failed to meet these obligations.”

Arnold won’t be entitled to severance benefits because he was terminated for cause, according to a filing Tuesday. His outstanding equity awards, both vested or unvested, are also subject to automatic forfeiture, San Diego-based LPL said in the filing. 

Steinmeier, 50, has been chief growth officer since May, and was a divisional president for the firm’s business strategy and growth from August 2018 until then. Steinmeier’s compensation won’t be changed in connection with his new role, according to the filing.

“The board has every confidence in Rich and LPL’s seasoned management team to ensure a smooth and stable transition,” Putnam said.

Details of the statements Arnold allegedly made weren’t disclosed. Arnold didn’t immediately respond to a request for comment. An LPL representative declined to comment beyond the company’s statement.

After resuming trading following a halt pending Tuesday’s announcement, LPL shares fell 4.3% to $219.95 at 4:45 p.m. in late New York trading.

LPL said it serves more than 23,000 financial advisers, including advisers at around 1,000 institutions and at about 580 registered investment-adviser firms across the US.

(Updated with details from filing starting in fourth paragraph.)

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