LPL Financial plans to add a cybersecurity executive to its board of directors this year, according to a filing with the Securities and Exchange Commission.
The indpendent broker/dealer's Nominating and Governance Committee recommended Corey Thomas, the chairman and CEO of Rapid7, a publicly-traded cybersecurity company, to fill a new board seat. In 2018, Thomas was also elected to the Cyber Threat Alliance (CTA) board of directors and the Massachusetts Cybersecurity Strategy Council. Prior to Rapid7, he previously worked for Microsoft and Deloitte Consulting.
If shareholders vote and approve Thomas at the company's annual meeting May 8, he will be the eighth independent director and ninth total. Every board member is up for election each year, including LPL CEO Dan Arnold.
The IBD hired search firm Heidrick & Struggles to help it find a director who could contribute meaningfully to the board, "particularly in the context of the company’s evolving business strategy and operating environment."
Last year, the personal information of some LPL advisors' clients were exposed in a data breach, after one of Capital Forensics’ third-party platforms was attacked.
In recent years, LPL has expanded and worked to diversify its board of directors, according to its 2019 proxy statement. It has added six new independent directors since 2014. Among those, Paulett Eberhart, William Glavin Jr., Allison Mnookin and Thomas were all committee nominees. Anne Mulcahy, James Putnam, James Riepe and Richard Schifter are also directors.
The average age of the board is 60 and the members have served an average tenure of six years. One-third of the directors are women, which puts the board among the top in the industry in terms of gender diversity, according to LPL.
Non-employee directors receive an annual retainer of $235,000. The directors can choose to receive $80,000 in cash or, at the director’s election, in the form of shares of common stock. The remaining $155,000 in compensation is paid in the form of restricted shares of common stock, according to LPL's 2019 proxy statement.
LPL declined to comment about the addition of Thomas to the board.