Matthew Audette
LPL Financial HoldingsAbout Matthew Audette
Matthew J. Audette is President and Chief Financial Officer of LPL Financial Holdings Inc. (LPLA), serving as CFO since 2015 and elevated to President in October 2024; he is 50 and holds a B.S. in accounting from Virginia Tech, with prior roles as EVP & CFO at E*TRADE and earlier at KPMG . In 2024, LPL delivered strong corporate performance: advisory and brokerage assets rose 29% to $1.7 trillion, Adjusted EBITDA increased 7% to $2.2 billion, gross profit grew 12% to $4.5 billion, and the share price appreciated 43%—key drivers for incentive outcomes . Audette oversees finance, risk, compliance, service and supervision, and client operations, linking pay to metrics like Incentive EBITDA, relative TSR, and strategic business goals .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| LPL Financial | President & CFO | Oct 2024–present | Executive leadership over finance, risk, compliance, service & supervision, client operations |
| LPL Financial | Head of Business Operations | Feb 2023–Oct 2024 | Operational leadership supporting growth and execution |
| LPL Financial | Oversight of LPL Services Group | May 2022–Feb 2023 | Scaled services enabling advisor productivity |
| LPL Financial | Chief Financial Officer | 2015–present | Led FP&A, treasury, controllership, tax, internal audit, corp dev, IR |
| E*TRADE Financial | EVP & CFO | ~16 years (prior to 2015) | Drove franchise growth, corporate transactions, capital activities |
| KPMG | Early career in financial services | N/A | Foundation in accounting and audit |
Fixed Compensation
Multi-year compensation (SCT-reported):
| Metric (USD) | 2022 | 2023 | 2024 |
|---|---|---|---|
| Salary | $600,000 | $625,385 | $648,462 |
| Stock Awards (RSUs/PSUs fair value) | $1,315,344 | $1,319,013 | $1,833,037 |
| Non-Equity Incentive Plan Compensation | $1,500,000 | $1,375,000 | $1,600,000 |
| All Other Compensation | $30,375 | $77,280 | $298,664 |
| Total | $3,445,719 | $3,396,678 | $4,380,163 |
2024 base salary increased to $750,000 upon his appointment as President & CFO effective Oct 21, 2024 .
Performance Compensation
Annual Bonus Structure (Company-level drivers)
| Component | Target Metric | Baseline Weight | Target | Actual | Payout/Result |
|---|---|---|---|---|---|
| Financial: Incentive EBITDA | Incentive EBITDA | 30% | $2,340M | $2,305M | 96% payout |
| Financial: Relative TSR | TSR vs S&P1500 Capital Markets comparators | 10% | 50th percentile | 44th percentile | 88% payout |
| Business Goals | Horizontal Expansion | 15% | Exceeds | — | Rated “Exceeds” |
| Business Goals | Vertical Integration | 15% | Meets | — | Rated “Meets/Partially Meets” |
| Business Goals | Enablers | 10% | Meets | — | Rated “Meets” |
| Total Funding Outcome | Financial + Business Goals | 80% | — | — | Financial funded at 38%; Business Goals at 46% |
2024 individual bonus outcome for Audette:
- Target award $1,405,000 (215% of base); actual bonus $1,600,000 (245% of base, 114% of target) .
Long-Term Incentives (structure and grants)
- 2024 Annual Grants:
- RSUs: 2,359 shares; grant-date fair value $614,913; vest in equal annual installments over 3 years .
- PSUs (relative TSR over 3 years): Target 3,539; Threshold 1,770; Max 7,078; grant-date fair value $1,218,124; vest based on 3-year performance, with vesting at determination date .
- 2025 LTI Awards: $5,375,000 total (60% PSUs, 40% RSUs), sized at ~717% of base salary; granted Feb 25, 2025 using 30-day average price methodology .
Equity Ownership & Alignment
Beneficial Ownership
| Holder | Shares Owned | Right to Acquire (60 days) | Total % |
|---|---|---|---|
| Matthew Audette | 8,427 | — | <1% |
Outstanding Equity Awards (12/31/2024)
| Award Type | Quantity | Reference Price | Market/Intrinsic Details |
|---|---|---|---|
| Unvested RSUs | 795; 1,182; 2,359; 7,154 | $326.51 close | Market values: $259,575; $385,935; $770,237; $2,335,853 |
| Unearned PSUs (in cycle) | 5,316; 7,078 | $326.51 close | Payout value basis: $1,735,727; $2,311,038 |
| Stock Options (Exercisable) | 15,874 @ $65.50 exp 2/23/2028; 12,903 @ $77.53 exp 2/25/2029 | $326.51 close | In-the-money given year-end price > exercise price |
2024 vesting/exercises:
- Options exercised multiple tranches of 5,000–7,704 shares; values realized ~$1.045M–$1.611M per tranche .
- PSUs vested 11,302 shares; value $2,976,495; RSUs vested 1,256/795/590 shares; values $330,780/$209,371/$155,382 .
Ownership Policies and Trading
- Executive stock ownership guidelines: 3× base salary (CEO 6×); all NEOs (including Audette) met guidelines as of March 24, 2025 .
- Anti-hedging and anti-pledging: Prohibits short sales, hedging and pledging/margin accounts .
- Blackouts and pre-clearance for insiders; Rule 10b5‑1 plan governance detailed in Insider Trading Policy .
- 10b5‑1 plan: Audette adopted on Nov 6, 2024 for potential sales up to 38,103 shares, trading window Feb 5–Jul 17, 2025 .
Employment Terms
| Scenario (as of 12/31/2024) | Severance | Bonus | RSU Accel/Continue | PSU Accel | Benefits (COBRA) | Total |
|---|---|---|---|---|---|---|
| Without Cause / For Good Reason | $750,000 | $1,600,000 | $709,179 | $2,002,160 | $16,319 | $5,077,658 |
| Death / Disability / Retirement | — | — | $1,415,746 | $2,002,160 | — | $3,417,906 |
| Double‑Trigger Change in Control | $1,125,000 | $2,812,500 | $1,415,746 | $2,002,160 | $24,479 | $7,379,885 |
Additional terms:
- No individual employment agreements; executives serve at will; severance governed by Executive Severance Plan .
- Clawbacks: SEC-aligned policy for restatements (3-year lookback) plus supplemental policy enabling recoupment of cash/time/incentive equity for broader misconduct (e.g., willful misconduct) .
- Trading compliance: mandatory pre-clearance for Section 16 officers; quarterly and special blackouts; 10b5‑1 plan controls .
Investment Implications
- Pay-for-performance alignment: High variable mix (cash bonus and PSUs) linked to Incentive EBITDA, relative TSR, and strategic execution; 2024 bonus paid 114% of target reflecting financial and business goal achievement .
- Retention and change-of-control: Meaningful double-trigger CIC protections ($7.38M) with equity acceleration support retention through strategic transitions; absence of individual employment contracts adds flexibility but places emphasis on plan-level severance .
- Insider selling pressure: A Rule 10b5‑1 plan for up to 38,103 shares through mid-2025 suggests potential programmed sales; monitor filings and execution vs ownership guideline compliance and blackout policies .
- Alignment and risk controls: Strong ownership guidelines (met), anti-hedging/pledging, and robust clawbacks mitigate misalignment risks; governance around blackouts and pre-clearance reduces trading risk .
- Execution risk: 2024 TSR underperformed peers (44th percentile) amid regulatory headwinds to cash management; however, asset growth, gross profit, and Adjusted EBITDA expansion provide fundamental support for incentive outcomes and capital deployment .
Appendix: 2024 Grants of Plan-Based Awards (Detail)
| Award | Approval Date | Grant Date | RSUs (#) | RSUs Fair Value (USD) | PSUs Target (#) | PSUs Grant-Date Fair Value (USD) |
|---|---|---|---|---|---|---|
| Annual LTI | Feb 9, 2024 | Feb 25, 2024 | 2,359 | $614,913 | 3,539 | $1,218,124 |
Appendix: Bonus Target vs Actual (2024)
| Item | Target Award | Target as % of Salary | Actual Award | Actual as % of Salary | Actual as % of Target |
|---|---|---|---|---|---|
| Matthew Audette | $1,405,000 | 215% | $1,600,000 | 245% | 114% |