UBS Wealth Management Americas is beefing up its recruiting package in the chase for elite financial advisers, but the deal falls short of those recently offered by two top rivals.
UBS Wealth Management Americas is beefing up its recruiting package in the chase for elite financial advisers, but the deal falls short of those recently offered by two top rivals.
UBS, which announced the plan yesterday, will have stiff competition in enticing reps to join.
It will offer recruits as much as 280% of their current annual production, which is an increase from its current level of 220% of a broker's prior 12 months of fees and commissions.
That still falls short of rivals Morgan Stanley Smith Barney LLC and Merrill Lynch & Co. Inc.'s global wealth management group, however. Those two firms are offering top advisers deals that, over time and depending on an adviser's production, could be worth as much as 330% of a rep's previous year's fees and commissions.
“We are being very selective on the type of [adviser] we are recruiting,” said Kris Kagel, a UBS spokesman.
Advisers in the top 20% of production will receive a 130% upfront cash payment.
Robert McCann, the former head of Merrill Lynch's brokers, was named the head of UBS' wealth management group for the Americas in October. The unit has 7,200 reps and advisers.
This month, Mr. McCann moved to reward the veteran brokers who have stayed with UBS through the tumult of the past two years.
The new enhanced-compensation plan rewards brokers and advisers who have been with the firm for five years or more and produce at least $500,000 in sales.
Dow Jones Newswires first reported the news about UBS' recruiting package.
