Katharine Reeping
LPL Financial HoldingsAbout Katharine Reeping
Katharine Reeping, age 48, was appointed Chief Accounting Officer (principal accounting officer) of LPL Financial Holdings Inc. on February 28, 2025, reporting to President & CFO Matthew Audette; she signed the company’s Q3 2025 Form 10‑Q in that capacity . She has 20+ years in finance and controls (accounting, financial reporting, FP&A, risk), previously serving as LPL’s SVP, Corporate Controller (Aug 2022–Feb 2025), with prior leadership roles at PNC (2014–2022), E*TRADE, and a career start at Deloitte; she holds a Bachelor’s in Accounting from Penn State, is a CPA, and has a Series 99 designation . Company executive pay‑for‑performance is linked to Incentive EBITDA, Operating Margin, Organic Growth, and Relative TSR; notably, 2022 PSUs paid out at 200% on February 25, 2025 after LPL’s TSR reached ~105% and ranked above the 80th percentile vs comparator group, underscoring strong equity‑linked value creation .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| LPL Financial Holdings Inc. | SVP, Corporate Controller | Aug 2022–Feb 2025 | Led corporate accounting and reporting; foundation for internal control rigor supporting LPL’s growth |
| PNC | SVP, Financial Reporting & Analysis | May 2018–Jun 2022 | Oversaw enterprise reporting/analysis; enhanced reporting quality and discipline |
| PNC | VP, Financial Reporting | May 2014–May 2018 | Advanced reporting processes and regulatory compliance |
| E*TRADE Financial | Various leadership roles (Accounting, Financial Reporting, Accounting Policy) | ~10 years (dates not disclosed) | Built multi‑functional finance leadership across brokerage operations |
| Deloitte | Audit/Accounting (career start) | Years not disclosed | Public accounting foundation; controls and GAAP proficiency |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| None disclosed | — | — | No public company board or external governance roles disclosed for Reeping in filings reviewed |
Fixed Compensation
| Component | Value | Effective Date |
|---|---|---|
| Base Salary | $380,000 | Mar 3, 2025 |
| Target Annual Cash Bonus | $228,000 (60% of base) | Mar 3, 2025 |
| Target Annual LTI (Equity) | $266,000 (70% of base) | Mar 3, 2025 |
| Total Target Annual Compensation | $874,000 | Mar 3, 2025 |
Note: Percentages are computed from disclosed amounts .
Performance Compensation
| Incentive Type | Metric | Weighting | Target | Actual | Payout | Vesting |
|---|---|---|---|---|---|---|
| Annual Cash Bonus | Company financial & business goals; metrics include Incentive EBITDA, Operating Margin, Organic Growth | Not disclosed for CAO | Pre‑established corporate goals set by Comp Committee | Not disclosed for CAO | Funded based on company performance and individual assessment | Cash (no vesting) |
| PSUs (LTI program) | Relative TSR vs comparator group | Award mix for CAO not disclosed; NEOs used 60% PSUs/40% RSUs in 2024–2025 | 50th percentile TSR = 100% of target; 25th = 50%; 80th = 200% | Company TSR 105% in 2022–2025 period; NEO PSUs paid at 200% at vest on Feb 25, 2025 | 0–200% of target; capped at 100% if TSR negative | Later of 3‑year anniversary and committee certification |
| RSUs (LTI program) | Time‑based service | Award mix for CAO not disclosed; NEOs used 40% RSUs in 2024–2025 | N/A (service‑based) | N/A | N/A | Vest in 3 equal annual installments under NEO program |
Company LTI policy details apply firm‑wide under the stockholder‑approved plan; CAO‑specific LTI award mix was not disclosed in the appointment 8‑K .
Equity Ownership & Alignment
| Item | Policy/Status |
|---|---|
| Executive stock ownership guideline | 3x base salary for executive officers; CEO 6x |
| Time to comply | 5 years from becoming an executive officer |
| What counts toward guideline | After‑tax value of all unvested RSUs and all outstanding shares count; stock options and unvested PSUs do not |
| Anti‑hedging & anti‑pledging | Hedging, monetization transactions, margin accounts, and pledging company stock are prohibited |
| Rule 10b5‑1 plan policy | Specific policy applies to executive officers and directors adopting trading plans |
| Personal beneficial ownership | Not disclosed for Reeping in the proxy excerpts reviewed; beneficial ownership table lists NEOs/directors and group totals |
Employment Terms
| Term | Detail |
|---|---|
| Appointment date & role | Appointed Chief Accounting Officer on Feb 28, 2025; principal accounting officer; reports to President & CFO |
| Employment agreement | Company discloses it does not have individual employment agreements with executive officers; executives serve at will; terms via Executive Severance Plan and offer letters |
| Executive Severance Plan (without cause/for good reason) | Continued base salary for 1 year, amount equal to most recent annual bonus, and COBRA subsidy for 1 year |
| Restrictive covenants (severance condition) | Non‑competition, non‑solicitation, confidentiality; 12 months post‑termination; 18 months if within 12 months after a change‑in‑control |
| Change‑in‑control treatment | Double‑trigger required (termination without cause or for good reason within 12 months after a change‑in‑control); modified golden parachute cutback (reduce to avoid excise tax if beneficial) |
| Tax gross‑ups | No tax gross‑ups or make‑whole compensation on severance/change‑in‑control payments |
| Clawback policies | SEC‑aligned clawback for erroneous incentive‑based compensation; supplemental clawback for broader circumstances including willful misconduct |
| Insider trading controls | Formal insider trading policy; anti‑hedging/anti‑pledging; 10b5‑1 plan policy for executives |
Performance & Track Record
- Company TSR outperformance: PSUs granted in 2022 vested at 200% on Feb 25, 2025 after LPL’s TSR reached ~105% and exceeded the 80th percentile vs the comparator group, indicating strong equity value creation during the performance period .
- Executive performance scoring: Annual bonus funding is tied to pre‑established financial/business goals, with metrics including Incentive EBITDA, Operating Margin, Organic Growth, and Relative TSR—reinforcing pay‑for‑performance alignment .
Compensation Committee Analysis
- Committee composition: Independent directors—Edward C. Bernard, H. Paulett Eberhart, William F. Glavin, Allison H. Mnookin (Chair), James S. Putnam; all meet Nasdaq independence standards and are non‑employee directors .
- Process & advisors: Committee sets compensation philosophy, approves executive compensation, engages an independent compensation consultant for market benchmarking, plan design, and risk assessment; consultant determined independent with no conflicts .
- Peer benchmarking context: For compensation decisions, LPL compared its 2023 revenue ($10.1B) and market cap ($17.2B) to a peer group median (revenue $5.9B; market cap $14.9B) to calibrate competitiveness .
Investment Implications
- Alignment: Reeping’s pay mix includes a meaningful variable component (bonus and equity), with equity tied to firm‑wide TSR and profitability metrics—aligning her incentives with shareholder outcomes .
- Retention risk: Standard executive severance with post‑termination non‑compete/non‑solicit (12–18 months) and double‑trigger CIC protection reduces abrupt departure risk; no employment agreement suggests at‑will flexibility .
- Selling pressure: Anti‑hedging/anti‑pledging policies and ownership guidelines mitigate forced or opportunistic selling; RSUs typically vest in 3 installments under the NEO program, which can create predictable liquidity events over time .
- Trading signals to monitor: Future Form 4 filings around vest dates or policy changes; bonus/PSU framework revisions; and any 8‑K 5.02 updates affecting role or compensatory arrangements could signal changes in incentive alignment and retention .