Investor Presentaiton
5 Disciplined expense management driving operating leverage
In 2023, the environment is creating an opportunity to accelerate
investments to advance our strategic priorities
Long-term cost strategy
Deliver operating leverage in core business
•
Prioritize investments that drive additional growth
Drive productivity and efficiency
•
Adapt cost trajectory as environment evolves
2023 Core G&A* context
.
Our spending plans are on track with our initial 2023 Core G&A* outlook range of
~12% to -15% year-over-year growth, or $1,335M to $1,370M
These investments fall roughly equally into three broad areas, with each driving ~4-
5% growth in Core G&A*:
.
First, to support core business growth, including investments in technology
and capabilities
• Second, to support growth in expanded markets and to scale new services
Third, to accelerate timing of investments that advance our strategy
In Q1, Core G&A* was $326M, or an annualized rate of $1,300M, below the lower
end of our 2023 outlook range, giving us flexibility throughout the rest of the year
Core G&A* outlook
Recent expense trajectory, prior to acquisitions
Annual Core G&A* Growth
~12% - ~15%
13%
8%
6%
6.5%
2019
2020
2021 Prior to
Waddell & Reed
2022
2023 Outlook
Q1 2023
2023 Outlook
$326M
$1,335M to $1,370M
LPL Financial Member FINRA/SIPC
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