LPL Financial CEO Dan Arnold has lost his job over failing to maintain a respectful workplace, the firm announced Tuesday.
Arnold, who has held the top spot at the independent broker-dealer since 2017, was let go by a special committee of firm directors following an investigation by an outside law firm. The firm found that statements Arnold had made to employees violated the firm's code of conduct.
"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 LPL's board of directors, said in a statement. "Mr. Arnold failed to meet these obligations."
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Arnold, who also resigned from the board, will be replaced in the short term by Rich Steinmeier, currently chief growth officer for the firm. Steinmeier, now technically the interim CEO, has been with LPL since 2018 and became chief growth officer in May of this year.
"The board has every confidence in Rich and LPL's seasoned management team to ensure a smooth and stable transition," Putnam said in a statement.
LPL Financial came in as the No. 1 largest independent broker-dealer by revenue in Financial Planning's latest IBD Elite ranking. The firm has been growing quickly through a series of mergers and acquisitions. Also on Tuesday, it announced the completion of its planned purchase of Atria Wealth Solutions, a deal expected to bring on as much as $100 billion in client assets and 2,400 advisors.
LPL said in a press release it has a goal of retaining at least 80% of those assets. It plans to have the advisors moved over by the middle of next year.
