The Swiss firm, which has about 7,000 advisors in the Americas, aims to further boost results that recently have put it ahead of rivals. Yearly revenue per advisor stood at $1.079 million in third-quarter 2014, up 1% from $1.068 million in second-quarter 2014 and up 9% from $994,000 in 3Q’13.
“There are no changes to the standard production grid. It remains competitive and is in line with our focus on quality advisors,” the company said in a memo late last week. The standard production bonuses range from 28% to 45% of fees and commissions.
Reps bringing in up to $249,000 of production have payouts of 28%-30%; those with $250,000 to $624,999 get 33%-39%, and FAs producing $625,000 and more receive 41%-45%.
The firm says its wealth-management award has been “significantly enhanced” to encourage advisors to grow their practice. Wealth-management production will include fees tied to advisory services, insurance, lending and planning in 2015, with bonuses of up to 6% of production.
Those advisors who have fees and commissions tied to these products and services that represent between 5% and 24.99% of their total production will get an extra bonus of 0.50%-1% of their wealth-management sales.
For UBS reps who make between 25% and 49.99% of their total production in wealth-management products and services, the wealth-management bonus will range from 1.5%-3.5% of this production. Advisors with wealth-management sales that represent 50% or more of their total production will get a wealth-management bonus worth 4%-6% of these fees & commissions.
“The 6% level is the most I have seen from any major firm, in terms of what is being paid on an ongoing basis for the most-successful advisors,” said compensation consultant Andy Tasnady of Tasnady Associates in Port Washington, New York, in an interview. “This is a bonus that will be paid not just on growth [over last year] but on the overall business.”
UBS’ enhancement could help its advisors continue to grow lending, for instance, which is an area that many firms are promoting, the compensation expert adds.