UBS Financial Advisor compensation and reward

A different approach: flexible three-phase plan

by David Larado Head, Advisor Recruiting & Retention UBS Wealth Management

Advisors on the move, as well as advisors in general, want transparency in compensation and reward. A clear up-front understanding of compensation and reward can simplify the often complex process of transitioning your practice to another firm. This article examines our innovative approach to advisor compensation and reward.

We remain committed to our principles of rewarding productivity, growth and longevity. Our Incentive Grid, which was introduced in 2022, remains unchanged. For 2024, we added a new Client Growth Award and new incentives for engaging clients in everyday banking services – all designed to help you grow and build more meaningful relationships with clients.

Combining this exceptional opportunity with a generous compensation package aligned with my long-term career goals made the decision to join UBS an easy one.
2022 Morgan Stanley recruit

Advisor compensation and reward at UBS: flexible three-phase plan

The backbone of the UBS advisor compensation and reward plan is quite simple. We reward loyalty, growth and productivity, and we do so with compensation and reward built around three phases: Join. Grow. Transition. This innovative approach resonates with high performers. According to a recent advisor recruit from Morgan Stanley: “I received an offer to join a UBS team with a massive business and an advisor who planned to retire in 10 years. He could help enhance my productivity, and we could achieve positive synergies working together. Combining this exceptional opportunity with a generous compensation package aligned with my long-term career goals made the decision to join UBS an easy one.”

An “all-in” approach

When we talk about advisor compensation and reward, we look at a cumulative methodology that aligns with three phases:

stage 1

The join phase

offers a competitive recruit deal potentially composed of an either (1) an upfront loan & bonus, salary and deferred compensation or (2) an upfront loan & bonus, back-end loans & bonuses, and deferred compensation.

stage 2

The grow phase

is a function of your revenue and length of service at the firm. Within the incentive grid rate, there is a monthly production payout and ability to achieve a year-end award(s).

stage 3

The transition phase

highlights our Aspiring Legacy Financial Advisor (ALFA) program, which rewards you for transitioning your business on your timeline to advisors of your choice and preserving client relationships.

Learn more about our three-part compensation and reward plan

Phase 1. Join UBS

Phase 2. Grow with UBS

Phase 3. Transition with UBS
 

Phase 1. Join UBS: The recruit deal

We offer a traditional upfront loan, monthly salary or back-end loans earned by the recruit and deferred compensation match for unvested deferred compensation forfeited at a current employer. Unlike many competitor recruit deals, we can offer the option of no performance hurdles for certain recruits. Best of all, we customize each recruit deal so you can have every confidence you will be rewarded for the successful practice you have built.

Phase 2. Grow with UBS: Total advisor compensation and reward can offer you 60% (or more) of your revenue

This phase rewards you based on the revenue you generate over the length of your service at the firm. Our incentive grid rate generally caps out at 60% and includes production payout (cash) and year-end award (deferred compensation). For highly productive advisors with over $10 million in individual production or over $20 million on a team with $5 million of average advisor productivity, you can be eligible for an additional 1.5% cash productivity award.

We also offer an added incentive for advisors who focus on supporting their clients’ lending needs with flexible financing products. When offering credit lines (non-purpose loans), advisors receive production credits on the full net spread, regardless of the discount. The credited full net spread gets multiplied by the outstanding balance, with an incentive rate of 11.25%, provided the loans are not deeply discounted. Trailing 12-month production from credit lines, even in cases where there is no payout due to discounting, counts toward calculating an advisor’s incentive rate.

In addition, four Recognition Councils recognize top-performing advisors based on a combination of production and relative performance nationally, and other eligibility factors set by the firm. Recognition Council members participate in training and education events, and receive an enhanced expense allowance for the purpose of promoting business.

Phase 3. Transition with UBS: Earn competitive production rates when it is time to transition

Eligibility for phase three can be considered when your recruit deal ends. Our highly flexible ALFA program rewards you for the business you have built over the life of your career and allows you to continue to earn income during the transition period. The maximum incentive is 300% of your trailing 12-month production. After only five years of service at UBS, highly productive recruits may be eligible for total incentives of at least 250% of their trailing 12-month production (with a majority funded by the firm, not the receiving FAs).

We are incredibly proud of our ALFA program, which is among the most competitive transition programs in the industry and is focused on what matters most—you and your clients. Aligned with our strategy of recognizing loyalty to UBS over time, we are committed to the ALFA program; for all current UBS Financial Advisors and joiners in the near future the payout percentages under ALFA will be available when you are ready to start your transition process.1

New in 2024

Key highlights include:

Incentive Grid: Incentive grid remains unchanged for 2024.

New Client Growth Award: Qualifying Financial Advisors will be awarded 1% of their compensable T-12 as of December 2024. If they generate positive net new business and generate at least two Qualified New Relationships with an asset minimum.

Compensation for clients engaged in qualified banking services: Qualifying Financial Advisors will receive capped monthly compensable production credits on eligible cash balances on qualifying households.
 

Focusing on teams with a highly competitive compensation and reward plan

Teaming is a big part of how we best serve our clients, drive our industry-leading productivity and grow our business. We are proud of the fact that we are the only major firm in our industry to offer Highest Producer Grid (HPG) and Combined Team Grid (CTG) for highly productive teams. If qualified, these structures allow teams to be viewed and incentivized as a unit instead of as individual contributors in the business.

Multi-tiered and highly productive teams may qualify for enhanced team incentives. Under our CTG treatment, for teams that generate over $6 million in production with an average of $1.2 million per advisor, the entire team receives the incentive rate aligned to the combined team’s trailing 12- month production. complex needs of our successful clients and delivering an exceptional client experience,” says Jason Chandler, head of UBS Wealth Management USA. “We are committed to making teaming easier and more rewarding for advisors because we know from our research that many high net worth and ultra high net worth clients want to be serviced by teams.”

Coming Soon: technology to bring early transparency

For many advisors, compensation and reward transparency is crucial, especially early in the recruiting process. In response to this need, we are developing technology to help advisors gain transparency on potential “all-in” compensation and reward as early in the discovery process as possible.

Our innovative technology will allow you to explore compensation and reward options in advance—to see how committed we are to a competitive “all-in” compensation and reward plan that makes sense for you. With our new technology, you will be able to:

  • Answer a couple of questions, such as current AUM, 12-month trailing gross production and the total new assets you project to add in future years. 
  • Estimate your potential earnings range as a UBS advisor. With this potential earnings range as an initial guide, you can better determine your next steps.

UBS: an exceptional opportunity

We understand how vital a transparent and competitive compensation and reward plan can be when thinking about a new career path. Our approach to advisor compensation and reward considers every phase of your career, from when you start at UBS to when you’re ready to stop working in the industry. As part of our recruiting process, we spend the time it takes to explore compensation and reward options to aid you in your decision-making. spend the time it takes to explore compensation and reward options to aid you in your decision-making. And at the end of the journey, we believe you (like many others who have joined before you) will see why UBS offers an exceptional opportunity.

 

To learn more about UBS compensation and rewards or to apply for a UBS Financial Advisor role, submit your contact information to be connected with a Field Leader. 

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1 Notwithstanding this commitment, given the highly regulated nature of our business, the firm must retain the right to amend or eliminate these commitments: (i) if necessary or appropriate to comply with legal or regulatory requirements or any changes in applicable law, rules or regulations or in the interpretation thereof by any regulator, agency or tribunal of competent jurisdiction; or (ii) if the firm determines in its  discretion that continuing these commitments in their then current form would be impractical or materially adverse to the firm as a result of any changes in applicable law, rules or regulations or accounting standards or in the interpretation thereof by any regulator, agency or tribunal of competent jurisdiction. 

This article is for general information purposes only and should not be construed as, nor is it intended to be, a contract, offer of employment, guarantee of continued employment or representation or guarantee as to future compensation. This article creates no rights of any kind (vested or otherwise) nor does it create a contract or assurance of employment, awards, compensation or benefits. Employment at UBS at all times remains "at-will."

All reward programs at UBS (including, without limitation, those referenced in this article) are governed by the applicable terms and conditions of each program document and applicable agreement(s) (all collectively referred to as the “Plan Documents”). As a result, if there are any conflicts between this article and any of the Plan Documents, the terms of the Plan Documents will govern. Nothing within this article alters or changes any of the Plan Documents.

UBS reserves the right to amend, modify, suspend or terminate any of the Plan Documents, in whole or in part, at any time.

You should not rely upon this article for tax or other filings and should consult your own tax advisor with regard to any tax consequences with respect to your individual tax return.