In the latest moves following a management shift atop the country’s largest independent broker-dealer, LPL Financial insiders have either shed or acquired shares in three separate transactions disclosed to the SEC this week.

Former LPL CEO Mark Casady, who stepped down last month, netted $5.1 million when he exercised stock options before they expired, according to filings. His successor, Dan Arnold, received shares worth $1.5 million under his compensation package.

The company also disclosed that board member Marco “Mick” Hellman has offloaded about one third of his holdings for $36 million. LPL shares have more than doubled to $40 per share, from $19.35 in February 2016.

CHANGING OF THE GUARD
Between Monday and Wednesday, Casady purchased more than 632,000 shares for a total of $20.6 million, then sold them for $25.7 million in nine transactions at varying prices.

He had a 60-day window around his March 3 exit to act on the options, according to spokesman Jeff Mochal.

“He has to exercise them or he loses them, basically,” Mochal says.

Casady retained more than 130,900 shares following the transactions.

Arnold, who assumed the CEO role Jan. 3 , received a onetime grant of about 38,800 shares valued at $38.65 apiece. That brings his total stake to more than 232,400.

The new CEO's pay package also includes an $800,000 yearly base salary, an annual cash bonus of up to $1.8 million and an annual stock bonus valued at as much as $2.8 million.

(Image: Bloomberg News)
Mark Casady announced in December that he would leave LPL in March and step down as CEO in January. Dan Arnold, LPL’s former CFO, assumed the role of CEO on Jan. 3.

“Mark Casady is out and Dan Arnold is in,” Aite Group senior analyst David Weiss says in an email. “Accordingly, the former exercised his in-the-money options to cash out and the latter was granted shares as the new CEO.”

LPL spokesman Mochal did not make Casady or Arnold available for comment on the transactions. Mochal also said he couldn’t speak for Hellman’s personal investment decision to sell 900,000 shares at $40 each. After the sale, Hellman has more than 1.8 million shares overall.

Hellman, who won election to the board in May 2016, didn’t respond to a phone call and email to HMI Capital. He founded the private investment firm after serving as managing director at a private equity firm that owned a majority stake in LPL, Hellman & Friedman.

“Marco Hellman of HMI (and formerly of Hellman and Friedman which took LPL public) likely cashed out for profit on some of HMI’s shares after acquiring them over time," Weiss says.

In his first earnings call as CEO last week, Arnold reported a 56% jump in fourth-quarter profits for LPL.

Register or login for access to this item and much more

All Financial Planning content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access