01—Abstract
Summary
Summary of the 8-K filed October 21, 2024. Cited figures are marked; the original filing is the authoritative source.
LPL Financial Holdings Inc. (Nasdaq: LPLA) announced on October 17, 2024 that its Board of Directors appointed Rich Steinmeier as Chief Executive Officer, effective immediately.
Steinmeier had served as interim CEO since October 1, 2024, and the Board also elected him as a director to fill the vacancy created by Dan Arnold's resignation. Matthew Audette was appointed President and Chief Financial Officer, effective immediately, expanding his prior role as CFO, a position he has held since 2015, and his responsibilities as Head of Business Operations since February 2023. The Board approved compensation for both executives, effective October 21, 2024.
Steinmeier's arrangements provide total target annual compensation of $12.0 milliona, consisting of a $900,000 base salary, a $2.7 million target annual cash bonus, and a long-term incentive award with a grant date value of $8.4 million. Audette's arrangements provide total target annual compensation of $8.0 million, consisting of a $750,000 base salary, a $1.875 million target annual cash bonus, and a long-term incentive award with a grant date value of $5.375 million. Both remain eligible for the LPL Financial LLC Executive Severance Plan.
A press release dated October 21, 2024 announcing the appointments is furnished as Exhibit 99.1 under Item 7.01 and is not deemed filed for purposes of Section 18 of the Exchange Act. In the release, Chair Jim Putnam described the CEO appointment as reflecting the Board's succession plan and noted that LPL's organic growth rate has more than doubled since Steinmeier joined the company in 2018.
02—Key points
Key Highlights
- Rich Steinmeier appointed Chief Executive Officer effective immediately; he had served as interim CEO since October 1, 2024, and was also elected to the Board.
- Steinmeier fills the board vacancy created by Dan Arnold's resignation.
- Matthew Audette appointed President and Chief Financial Officer, expanding his prior role as CFO (since 2015) and Head of Business Operations (since February 2023).
- Steinmeier's target annual compensation totals $12.0 million: $900,000 base salary, $2.7 million target cash bonus, and $8.4 million long-term incentive grant date value.
- Audette's target annual compensation totals $8.0 million: $750,000 base salary, $1.875 million target cash bonus, and $5.375 million long-term incentive grant date value.
- Compensation arrangements for both executives are effective October 21, 2024.
- Press release dated October 21, 2024 (Exhibit 99.1) furnished under Item 7.01, not deemed filed under Section 18 of the Exchange Act.
03—Questions
Frequently Asked Questions
Who is leading LPL Financial after this announcement?
Rich Steinmeier is now Chief Executive Officer, effective October 17, 2024 appointment date with immediate effect, and also serves on the Board. He previously served as interim CEO from October 1, 2024, and before that as Managing Director, Chief Growth Officer of LPL Financial LLC.
What are the new responsibilities of Matthew Audette?
Matthew Audette was named President and Chief Financial Officer, expanding his previous role as CFO and Head of Business Operations. The press release states he is responsible for the firm's financial, risk, compliance and client operations functions, and oversees teams delivering operational speed and transparency.
How is the new CEO's compensation structured?
The arrangements provide total target annual compensation of $12.0 million, including a $900,000 annual base salary, a target annual cash bonus opportunity of $2.7 million, and a target annual long-term incentive award with a grant date value of $8.4 million, effective October 21, 2024.
Why was Rich Steinmeier chosen as CEO?
According to the press release, Steinmeier's appointment reflects the Board's succession plan. Chair Jim Putnam cited the contributions Steinmeier has made during his tenure and the trusted relationships he has built with clients and employees, and noted that LPL's organic growth rate has more than doubled since he joined in 2018 to lead its growth initiatives.
Are the new executives eligible for severance protection?
Yes. The filing states that Steinmeier and Audette will each continue to be eligible for the LPL Financial LLC Executive Severance Plan, which was previously filed with the SEC on February 23, 2017.
04—Continue