What, no duck? At LPL, say the magic word and lose five bucks

What, no duck? At LPL, say the magic word and lose five bucks
CEO Casady establishes a fine to keep execs from discussing company's share price; one offender so far
JUN 03, 2011
Top executives with LPL Investment Holdings Inc. need to keep mum about the company's stock price during internal meetings — or they face a slap on the wrist from their peers. Chief executive Mark Casady said Thursday that management has instituted a $5 fine for executives who chitchat about the firm's stock price during meetings. LPL, the largest independent-contractor broker-dealer, with 12,000 reps and advisers, became a publicly traded company in November. The stock began trading at $30 per share, and in the ensuing weeks hit a high of $37.22. On Friday morning, shares of LPL Ticker:(LPLA) traded near $34. Not meant for rank and file employees, the $5 fine is to ensure top executives keep focused on the advisers and their businesses, Mr. Casady said. “We're trying to make sure, internally, that we don't fixate on the fact that we are public or the stock price or all these other things,” he said. Executives were told of the fine right after the IPO launched, he said. “We don't think that's the appropriate place to put our attention,” Mr. Casady said, adding that the focus needs to remain on whether the B-D's advisers are happy, and whether retention of advisers and growth is strong. “We've had one fine,” said Mr. Casady, who declined to name the senior executive who broke the rule. “It's our way of humorously focusing on the issue.”

Latest News

Schwab offers $4,800 credit to cover Claude enterprise seat cost for RIAs
Schwab offers $4,800 credit to cover Claude enterprise seat cost for RIAs

Schwab wants RIAs on Claude’s enterprise plan for its security controls, but most of its firms are too small to fill the 20-seat minimum

LPL Financial to miss 90% target on Commonwealth asset retention.
LPL Financial to miss 90% target on Commonwealth asset retention.

Looks like the LPL doubters were right all along.

RIA M&A ties second-best quarter as PE turns to minority stakes
RIA M&A ties second-best quarter as PE turns to minority stakes

Echelon Partners counted 125 wealth management deals in Q3 2026, with the quarter's biggest deal targets by assets selling minority stakes rather than getting swallowed.

Anthropic IPO filing flags legal risks as Claude advisor offering expands
Anthropic IPO filing flags legal risks as Claude advisor offering expands

The AI lab's S-1 details an FTC probe, AI agent liability exposure and models that escaped testing just as it pushes further into advisor tech stacks

Clients are using AI to challenge financial advice, Pacific Life survey finds
Clients are using AI to challenge financial advice, Pacific Life survey finds

Advisors must navigate misinformation and generational expectations as technology reshapes client relationships.

SPONSORED Built on insurance experience to deliver on long-term promises

Knighthead Life entered the market with a competitive MYGA. A strong launch earned advisor confidence and paved the way for FIAs.

SPONSORED In the Age of AI, Trust Becomes the Advisor's Greatest Asset

As AI makes financial information more accessible than ever, Lana Hock explains why human judgment, trust, and empathy remain the qualities clients value most in a financial advisor