UBS advisors, like their counterparts at rival wirehouse firms, will not see major changes to their compensation grid or deferred compensation in 2016. But the highest performing teams will see higher payouts.
The firm has the highest average annual level of fees and commissions among the four wirehouses based on third-quarter performance – at $1.1 million – and aims to stay on top of the field; the group’s roughly 7,000 reps in the Americas had average assets of $142 million.
“We believe our current compensation plan supports our strategy of being the firm of choice for high-net-worth and ultra-high-net-worth clients and the advisors who serve them,” said Jason Chandler, head of wealth management in the Eastern U.S. for UBS, in a statement. “We made minimal adjustments for 2016, as our plan effectively and competitively rewards our advisors.”
The most significant change concerns teams.
For advisors in groups with a combined yearly production of $2.5 million and higher and average production per rep of $750,000 and higher, there will be a higher grid payout, the firm says.
In concrete terms, this means that all members of a team meeting these standards will individually receive payouts based on what the team’s highest producer receives.
“Changes that were made were around teaming and reflect our desire to be the industry leader in supporting wealth management teams,” explained Chandler.
Also, team members can decide how they want to share bonuses and deferred compensation between themselves, according to a report last week in The Wall Street Journal.
Comp Plan Details