LPL Financial says it made some progress in 2021 in bolstering diversity among the ranks of its employees as well as its financial advisors, although improvements were uneven.
Seventeen percent of LPL advisors, for example, are women — a proportion LPL hopes to improve together with other diversity goals, the company says in its 2022 Sustainability Report. The report didn't give a full diversity breakdown of advisors or how that compares to previous numbers.
LPL’s 21-advisor Advisor Inclusion Council — 52% of whom are women and 51% are advisors of color — meets three times a year to find ways to attract more underrepresented financial advisors, help advisors address barriers to growth and cultivate inclusive communities for advisors, according to the report
Overall, women comprised 48% of LPL’s workforce in 2021, up from 46% in 2020, while Black employees made up 17%, up from 16% in 2020, according to the firm.
However, the percentage of Hispanic or Latino employees dropped from 8% in 2020 to 7% in 2021, while Asian employees represented 12% of the firm's workforce last year, down from 13% in 2020, LPL says.
LPL also saw no improvement at the board level, with people of color representing just 11% and women representing 33% in 2021, unchanged in both cases from 2020, according to the report.
Likewise, women made up 33% and people of color made up 23% of employees at the vice president level and above in 2021, again unchanged in both cases from 2020, LPL says.
And while women made up 41% of LPL's middle management in 2021, up from 40% the year prior, people of color represented 36%, down from 37% in 2020, according to the report.
Moreover, people of color made up 47% of entry-level staff in 2021, down from 52% in 2020, and 55% of support staff, down from 60% in 2020, LPL says.
Women, meanwhile, made up 57% of entry-level professionals last year, up from 51% in 2020, but 62% of support staff, down from 64% in 2020, according to the report.
Meanwhile, Edward Jones said last month that its advisor ranks are now made up of 22% women and 9% people of color.
By the end of 2025, Edward Jones wants to have 20% people of color and gender parity among leaders in its St. Louis home office, 15% people of color and 40% women among home office general partners, and 15% people of color and 30% women among U.S. advisors.
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