Investment intelligence. Re-defined

More investment strategies coverage. More access to investment insiders and gurus. More info to make more informed decisions.

»

LPL execs load up on options

The indie giant's top five executives — led by CEO Mark Casady — have acquired more than 300,000 options during the last week

By Bruce Kelly

September 18, 2009 3:15 pm ET

In a first, top executives with LPL Investment Holdings Inc. this week picked up hundreds of thousands of options to purchase the company's common stock — a move that has renewed speculation on a forthcoming IPO.

Advertisment



LPL's leading executives, including chairman and CEO Mark Casady, already own shares of stock in the company. This is the first time they have acquired options, according to filings made Monday with the Securities and Exchange Commission.

Mr. Casady acquired 120,000 options this week, with a strike price of $22.08. William E. Dwyer, president, national sales and marketing, acquired 50,000 options with the same strike price.

The LPL executives can exercise 20% of the options annually over the next five years.

The move was significant — if not surprising — observers said, particularly given the industry's intense speculation about LPL's making a public offering of stock.

Two private-equity firms acquired a majority stake LPL in October 2005. Since then, the firm has roughly doubled its head count of advisers, now totaling 12,489 reps affiliated across its broker-dealers.

“You just never know — [the firm] could be trying to save on cash compensation or build long-term incentives for people,” said Chip MacDonald, a partner in Atlanta with law firm Jones Day.

Granting options could be a sign, however, of a forthcoming initial public offering, he added. “Companies do make option grants before going public,” Mr. MacDonald said.

Another industry executive, who asked not to be identified, said that the options could be a reward for executives' work. “If it was part of an incentive package for management, it could mean they were going to go public soon,” the executive said.

According to SEC filings, the other LPL executives receiving stock options are: president and chief operating officer Esther Stearns, with 80,000; managing director and general counsel Stephanie Brown, with 40,000; and chief financial officer Robert Moore, with 80,000.

A spokesman for LPL, Joseph Kuo, said the company has no comment beyond the filings.

At the end of June, LPL's advisers had $259 billion in assets under management.

Comments