In exchange for agreeing to terminate their employment contracts, LPL Financial (LPLA +0.5%) President Robert Moore and CFO Dan Arnold each received $500K in restricted stock. Chairman and CEO Mark Casady also had his contract terminated.
LPL's decision has nothing to do with performance, but is instead meant to align the firm "more closely with market practices."
The moves come amid speedy growth for independent broker-dealers like LPL that may have helped allow regulatory lapses for which fines have recently been paid. Casady has allowed that LPL has sacrificed controls for growth over the past years. The board isn't holding it against him, boosting his pay 32% in 2013 to $6.14M.
Along with the contract terminations, the company severance plan was reworked to the benefit of management.