LPL Financial President Dan Arnold is set to become CEO on Jan. 3. When he takes on the associated responsibilities of the post, he will be getting a much higher salary, according to documents the company has filed with regulators.
In fact, the total package of salary and benefits could be as high as $5.4 million. Plus, Arnold is set to get a one-time stock award worth $1.5 million in 2017.
This represents a jump from the $1.85 million Arnold received in total compensation in 2015, which is the last full year the company has filed this information with securities regulators. He earned $2.2 million in 2014 and $2.1 million in 2013.
Departing CEO Mark Casady’s 2015 compensation package was $5.71 million, up from $5.52 million in 2014 but down from $6.15 million in 2013.
The independent broker-dealer announced that Casady, 56, planned to step down in early-December. He has run the firm for 10 years and will stay on as non-executive chairman through March 3.
Arnold has served as LPL’s president since March 2015, having joined the firm in 2007.
Specifically, Arnold will receive:
- An annual base salary of $800,000, up from $606,000 in 2015;
- A target annual cash bonus of up to 225% of annual base salary, or as much as to $1.8 million;
- A target annual long-term incentive compensation award valued at up to 350% of annual base salary or up to $2.9 million, with 50% of this award to be granted in stock options and 50% in performance-based share units; and
- A one-time grant of restricted stock units with an aggregate value of $1.5 million, which is expected to be granted on Feb. 13, 2017 (and will vest in 33% increments on the third, fourth and fifth anniversaries of this date).
In addition, Arnold remains eligible for the independent broker-dealer’s executive severance plan.