LPL Financial has reached a settlement agreement with its former CEO Dan Arnold, allowing him to retain stock options valued at $12 million, as disclosed in a recent SEC filing.
The agreement includes a general release of claims by Arnold against LPL, along with restrictive covenants such as non-competition, non-disparagement, and non-solicitation clauses. These provisions remain in effect until September 30, 2025, according to the filing.
This settlement comes approximately two months after LPL’s board terminated Arnold for cause, citing violations of the company’s code of conduct stemming from statements he made to employees. Details about the statements were not provided, and neither Arnold nor LPL has commented on the matter.
Arnold, who served as LPL’s CEO since 2017, oversaw significant growth during his tenure, increasing the company’s advisor count and expanding its business reach. Under his leadership, LPL became a dominant force in wealth management, with over 23,000 advisors and $1.6 trillion in advisory and brokerage assets. The firm’s stock performance reflects its growth, rising 42% this year compared to a 27% gain for the S&P 500.
In October, LPL named Rich Steinmeier, its Chief Growth Officer, as the new CEO. The company’s previous disclosures stated Arnold was not eligible for severance benefits, and all equity awards under LPL’s incentive plans were forfeited upon his termination. However, the settlement now allows Arnold to retain options valued at 15% of the total compensation he would have received if not terminated for cause, per the company’s December 9 filing.
The agreement concludes a contentious chapter for LPL while securing restrictions that aim to protect its competitive interests in the industry.
