LPL Financial headquarters in San Diego.

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.

Package Details

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.