LPL Financial names Rich Steinmeier CEO, effective immediately -- after shares shot up under his stint as interim CEO

After a hell of a good start, LPL Financial Holdings Inc. made it official -- Rich Steinmeier is taking the reins permanently as CEO after three weeks as interim CEO dating back to a fateful Oct. 1.

Steinmeier, 50, also just got a seat on the board of directors.

LPL shares have been on a steady rise since he took the reins. The stock closed on Oct. 1 at $229.85 and closed today at $256.35, up almost 12% or a $2 billion boost in market cap.

Previously, Wolfe Research analyst Steven Chubak seemed to actively lobby for Steinmeier.

"We are hopeful Steinmeier ultimately gets the nod here," he said.“Investor feedback on Steinmeier has been consistently positive, including following our slate of investor meetings last week, where he articulated a clear growth strategy/differentiated value proposition.”

The rapid-fire turn of events follows the surprise firing of former CEO Dan Arnold who left immediately with little explanation other than that he'd made unacceptable comments to LPL staff members. See: Dan Arnold steps down as LPL CEO, under a cloud, effective immediately; Steinmeier steps in as interim CEO

The Audette element

Though Arnold left in a cloud of dust, he may still have unfinished business with the company regarding stock options and a golden parachute. See: Dan Arnold is gone as LPL CEO, but his leverage to negotiate a settlement is apparent as LPL tells SEC it is deferring the exercise of 'automatic forfeiture' of some vested options

Though Steinmeier was the odds-on favorite, the one source of suspense was the Audette element. Many observers also consider the LPL chief financial officer, also 50, to be a CEO-stature executive. Audette came to LPL in 2015, three years before Steinmeier arrived in 2018.

LPL addressed the Audette matter fulsomely with statements and actions. Not only was the CFO named company president, but also kept his positions as CFO and head of operations.

“With Rich as CEO and Matt in his expanded role as president, the board is confident [about] LPL’s trajectory of high performance," said Jim Putnam, chair of the LPL Financial Board of Directors in a release.

Putnam added that LPL’s organic growth rate has more than doubled since Rich joined the company in 2018 to lead its growth initiatives. See: LPL Financial steamrolled results in the first quarter, 2021, with largest-ever 'organic' growth and a surging share price to match

No turnips

Steinmeier also quickly mentioned his new president.

“I’m fortunate to collaborate with Matt and our leadership team to elevate our service to clients, provide rewarding careers for our people, and build on our momentum as one of the fastest-growing companies in wealth management.”

Audette signaled he is okay with how the C-suite settled out.

“I look forward to continuing my partnership with Rich as we expand on our leading position in the advisor-centered marketplace and enhance value for all the stakeholders we serve,” he said in the release.

Neither Steinmeier nor 

Audette fell off the proverbial turnip truck.

Before joining LPL in 2018, Steinmeier held senior leadership roles at UBS Financial and Merrill Lynch as well as working as a consultant for McKinsey & Company. Steinmeier earned a B.S. in economics from the Wharton School at the University of Pennsylvania and an M.B.A. from Stanford University.

In his last stop before LPL, Audette served as executive vice president and chief financial officer of E*TRADE Financial Corp. Audette earned a Bachelor of Science in accounting from Virginia Tech.