What to Learn From LPL’s Firing of Dan Arnold: Recruiter

The unfolding story could further hurt the stock price, Simon says. (The stock did, in fact, recover Wednesday to close up 0.5% and trade near $231.)

It can prove valuable for firms to move sooner rather than later when problematic executive behavior is discovered, he adds. ”If concerning comments were captured from these meetings that were discriminatory, sexual or otherwise less than positive, a public company may feel safer parting ways on the front end to close the chapter as early as possible,” Hoyle explained.

The alternative is to simply wait and hope that such damaging information does not become public, he notes. But if it does, this risks further impacting a company’s reputation (and stock price) for not having acted earlier. 

Who to Hire?

Does the Arnold situation point to a need for publicly traded BDs to hire savvy, experienced executives — like Raymond James did in 2009 by tapping Paul Reilly, who’d been CEO of both Korn Ferry International and KPMG International, to be its president and then CEO? 

“There’s a greater expectation and need for companies generally to balance proficient business leaders with soft skills,” Hoyle said. “What one does, supports, and even hints at can carry significant ramifications.”

The good news for LPL, according to Hoyle, is that interim CEO Rich Steinmeier is well suited for the position. Steinmeier earlier served as its chief growth officer (since 2018) after working for UBS and Merrill.  

“He has a strong background and experience to be considered for this role,” Hoyle said. “If everything goes well, they will have already found their new (permanent) CEO.”

Pictured: Former LPL CEO Dan Arnold