Greg Gates
LPL Financial HoldingsAbout Greg Gates
Greg Gates is Managing Director, Chief Technology & Information Officer (CTIO) at LPL Financial (LPLA) since July 2021, responsible for all technology and systems applications; he joined LPL in 2018 after senior technology leadership roles at PayPal (product/engineering across platforms, risk/security, global ops) and Bank of America (culminating in leadership of Contact Center Technology). He holds a B.S. in Biomedical Engineering from Vanderbilt University . During 2024, LPL’s share price appreciated 43%, total advisory and brokerage assets rose 29% to $1.7T, and Adjusted EBITDA increased 7% to $2.2B (EBITDA $2.1B), though relative TSR ranked at the 44th percentile of peers .
- Note on financials: Revenues FY22–FY24 were $7.96B*, $9.07B*, and $11.27B* respectively (Values retrieved from S&P Global).
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| LPL Financial | Managing Director, Chief Technology & Information Officer | Jul 2021–Present | Leads IT to deliver market-leading advisor/enterprise platforms and resiliency/scalability improvements . |
| PayPal | Product Management & Engineering Leadership | 2011–2018 | Built internal tech platforms; drove merchant/consumer experiences, risk/security and global operations . |
| Bank of America | Technology Leadership (incl. Contact Center Technology) | 2002–2011 | Led technology organizations culminating in enterprise contact center tech leadership . |
External Roles
- No external public company board roles disclosed in the 10-K/Proxy biography for Mr. Gates .
Fixed Compensation
| Metric | 2023 | 2024 |
|---|---|---|
| Base Salary ($) | $524,039 | $550,000 |
| Target Bonus % of Salary | 220% (prior-year baseline per company disclosure) | 240% |
| Target Bonus ($) | n/a | $1,320,000 |
| Actual Cash Bonus ($) | $1,375,000 | $1,500,000 |
| All Other Compensation ($) | $55,984 | $6,600 |
| Total Compensation ($) | $3,390,162 | $3,864,169 |
Notes: 2024 target award as % of salary for Gates increased to 240% (from 220% in 2023) .
Performance Compensation
2024 Annual Incentive Framework and Outcomes (Company-Level)
| Metric | Baseline Weight | Target Definition | 2024 Outcome |
|---|---|---|---|
| Incentive EBITDA | 30% | Incentive EBITDA (non-GAAP) vs. target | 99% of target; 96% payout |
| Relative TSR | 10% | LPLA TSR percentile vs. S&P 1500 Capital Markets sub-industry peers | 44th percentile; 88% payout |
| Business Goals – Horizontal Expansion | 15% | Growth/recruiting goals | Exceeds (above-target) |
| Business Goals – Vertical Integration | 15% | End-investor/advisor experience & platform | Meets/Partially meets (attrition and NPS headwinds) |
| Business Goals – Enablers | 10% | Talent, culture, stability, data platform | Meets (tech stability below target due to external events) |
| Committee Discretion | 20% (baseline) | Qualitative factors (macro, regulatory, strategy, etc.) | No adjustment applied |
Individual outcome for Greg Gates: Bonus paid $1,500,000 (114% of target) reflecting progress modernizing LPL’s operating platform (resiliency/scalability), operational efficiencies, and advancing technology as a competitive differentiator .
Long-Term Incentives (LTI)
2024 Grants (Granted 2/25/2024):
- RSUs: 2,326 units; grant-date fair value $606,311; vest in three equal annual installments .
- PSUs (Relative TSR, 3-year): Target 3,490; Threshold 1,745; Max 6,980; grant-date fair value $1,201,258; earned 0–200% of target based on 3-year relative TSR; cap at 100% if absolute TSR negative .
2025 Annual LTI (Granted 2/25/2025):
- LTI grant value $1,950,000 (325% of $600,000 base); mix 60% PSUs (relative TSR, 3 years) and 40% RSUs (3-year ratable) .
PSU Payout of 2022 Cycle:
- 2022 PSUs earned at 200% of target; vested 2/25/2025 after 3-year performance period (TSR ~105% and >80th percentile) .
2024 Stock Vesting/Exercises (Realized)
| Type | Shares Vested/Exercised | Value Realized ($) | Notes |
|---|---|---|---|
| RSUs (various 2019–2024 grants) | 990; 686; 509; 510 | $260,726; $180,665; $134,050; $142,285 | RSUs vesting on 2/25/2024 (close $263.36) or other dates indicated . |
| PSUs (2019–2022 cycles) | 5,938 | $1,563,832 | PSUs vested 2/25/2024 (close $263.36) . |
| Stock Options | — | — | No 2024 option exercises by Gates . |
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Beneficial Ownership | 25,803 shares total: 18,614 directly held; 7,189 options right-to-acquire within 60 days . |
| Ownership % of SO | ≈0.03% (25,803 / 74,583,118 shares outstanding) based on shares outstanding at 3/24/2025 . |
| Outstanding, Unvested RSUs | 2,326; 1,022; 1,019; 686 (each vest in equal annual installments over 3 years from grant) . |
| Outstanding PSUs (in-cycle) | PSUs outstanding subject to 3-year relative TSR; company table shows max reference counts (4,584; 6,980) for cycles then in progress . |
| Options | 7,189 options exercisable at $77.53; expiring 2/25/2029 . |
| Ownership Guidelines | Executives ≥3x base salary; CEO 6x; all NEOs, including Gates, satisfied the minimum as of 3/24/2025 . |
| Hedging/Pledging | Prohibited under Insider Trading Policy (no hedging, pledging, margin) . |
Employment Terms
| Topic | Key Terms |
|---|---|
| Employment Agreements | LPL does not enter individual employment agreements with executive officers; uniform Executive Severance Plan applies (managing director level and above) . |
| Severance (No CIC) | 12 months base salary; cash payment equal to most recent annual bonus; acceleration of time-based equity vesting scheduled within 12 months; performance awards prorated to end of performance period; 12 months COBRA subsidy; 12-month restrictive covenants . |
| Change-in-Control (Double-Trigger) | 18 months base salary; 150% of target bonus; full acceleration of time-based equity; performance awards vest at target, prorated (unless designated retirement); 18 months COBRA subsidy; 18-month restrictive covenants . |
| Potential Payments (12/31/2024 theoretical) | Without Cause/Good Reason: Total $4,645,096 (Severance $550,000; Bonus $1,500,000; RSUs $810,072; PSUs $1,768,705; Benefits $16,319) . Double-Trigger CIC: Total $6,248,039 (Severance $825,000; 150% Target Bonus $1,980,000; RSUs $1,649,855; PSUs $1,768,705; Benefits $24,479) . |
| Clawbacks | Dodd-Frank aligned policy covering cash and equity linked to financial reporting measures (incl. stock price/TSR); supplemental clawback for willful misconduct . |
| Perquisites | Executive wellness program; financial planning reimbursement up to $15,000; relocation policy with tax gross-up (no excise tax gross-ups; modified parachute cutback on CIC) . |
Compensation Structure Analysis
- At-risk mix: Gates’s pay emphasizes performance leverage—2024 target bonus increased to 240% of salary and LTI includes a majority PSU component tied to 3-year relative TSR (60% PSUs/40% RSUs in 2024; 60/40 again in 2025) .
- Performance rigor: 2024 Incentive EBITDA delivered a 96% payout (just below target) while relative TSR paid 88% (below target), with business goals mixed (one “exceeds,” one “meets,” one “meets/partially meets”)—indicating balanced calibration with both financial and strategic outcomes driving payouts .
- Alignment features: Stock ownership guidelines met; robust clawbacks; no hedging/pledging; no individual employment contracts; double-trigger CIC protection—shareholder-friendly governance constructs .
- Vesting cadence: Multi-year RSU tranches and PSU performance cycles create recurring vesting dates (e.g., February), which can concentrate periodic supply; 2024 realized vesting included multiple RSU tranches and a PSU tranche .
Performance & Track Record
- 2024 company performance: Total advisory/brokerage assets $1.7T (+29% YoY), organic net new assets $140.7B (10% growth), gross profit +12% to $4.5B, EBITDA $2.1B and Adjusted EBITDA $2.2B (+7%), capital returns $260M; share price +43% .
- Execution risks/notes: Relative TSR underperformed peers (44th percentile) amid industry-wide regulatory scrutiny of cash programs; advisor NPS and technology stability issues affected certain business goals (“meets/partially meets”) .
- Technology modernization: Compensation Committee credited Gates with platform resiliency/scalability improvements and using technology as a competitive differentiator .
Say-on-Pay & Shareholder Feedback
- 2024 say-on-pay approval ~97%—indicating strong investor support for executive pay program .
Equity Ownership & Alignment Details (table)
| Component | Amount |
|---|---|
| Shares directly held | 18,614 |
| Options right-to-acquire (within 60 days) | 7,189 |
| Total beneficial ownership | 25,803 |
| Shares outstanding (3/24/2025) | 74,583,118 |
| Ownership % of SO | ~0.03% (computed from cited figures) |
| Ownership guideline requirement | 3x base salary (NEOs); satisfied as of 3/24/2025 |
Employment Terms (detail table)
| Scenario | Cash | Equity | Benefits | Restrictive Covenants |
|---|---|---|---|---|
| Termination w/o Cause or for Good Reason | 12 months base + last annual bonus | Time-based vest in 12 months; PSUs prorated to performance period end | 12 months COBRA subsidy | Non-compete/non-solicit/confidentiality (12 months) |
| Double-Trigger CIC | 18 months base + 150% of target bonus | Time-based fully accelerate; PSUs vest at target, prorated (unless designated retirement) | 18 months COBRA subsidy | Non-compete/non-solicit/confidentiality (18 months) |
Investment Implications
- Alignment: Strong ownership requirements, no hedging/pledging, rigorous clawbacks, and high at-risk pay with multi-year TSR PSUs align Gates with long-term shareholder value .
- Retention/pressure: Target bonus uplift (to 240% of salary) and ongoing PSU cycles support retention; recurring vesting (RSUs/PSUs) can create periodic sellable supply, but policy controls and ownership guidelines mitigate misalignment risk .
- Execution: The committee’s favorable assessment of technology resiliency and scalability progress is a positive signal; near-term watch items include technology stability (called out in 2024) and relative TSR vs. peers given 44th percentile result .
Footnote on revenue figures: FY 2022–FY 2024 Revenues values marked with an asterisk (*) were retrieved from S&P Global.