LPL Financial announced Tuesday that Dan Arnold, currently head of strategy for the largest independent broker-dealer, has been named chief financial officer of the company, the latest step in a management reorganization that has played out over the last few months.
In assuming the CFO position effective June 15, Arnold (left) replaces Robert Moore, who became LPL’s president (replacing LPL veteran Esther Stearns, who took a new job at the company) and COO on May 1. Following what Arnold said in a Tuesday interview would be a three-month “deliberate and thoughtful” transition period, he will begin reporting to Mark Casady, chairman and CEO of LPL (LPLA).
In a statement, Casady said the promotion occurred after an internal and external search process, which he said “clearly demonstrated is that we have in our midst an executive who is ready to take on a new challenge with expanded responsibility." Arnold agreed that the announcement “demonstrates the bench strength” within LPL’s executive ranks.
Running strategy for the company, Arnold said, gave him “the whole perspective” on the company, noting that he “had the good opportunity to run Uvest for 12 years,” eventually selling Uvest, which provides brokerage services through regional and community banks and credit unions—to LPL in 2006. Prior to becoming head of strategy for LPL, Arnold was president for four-and-a-half years of LPL’s Institution Services division, where Uvest resides and which provides brokerage and insurance services to 680 banks and credit unions.
Becoming CFO, he said, a role in which he will be able “to support the entire customer base” of LPL, including its nearly 13,000 representatives, “ was very appealing to me.”
As CFO, he said he will continue to manage the public company’s capital with a “strategic outlook” and to align LPL’s investments to expand its capabilities, enter new markets and drive more automation and productivity to all its constituents. LPL, he said, will continue to support organic growth opportunities and “acquisition opportunities.”
As for LPL’s support of its independent contractor reps, Arnold said that “if you look at the studies we’ve done of our advisors, we provide a distinctive, material contribution to their enhanced profitability.” He cited a report conducted for LPL by PriceWaterhouseCoopers—the 2010 Advisor Productivity and Profitability Study—which found that LPL reps had higher pretax income per owner, and significantly higher profit per client than their competitors.