UBS Retools Broker Pay Grid and Bonuses, Raises Pressure on Low Producers

UBS article

UBS Wealth Management USA is introducing today a new payout grid that will overhaul its payout formula for its roughly 6,000 brokers next year to simplify its bonus structure and also raise the so-called ‘penalty box’ threshold for low producers, according to a copy of the plan reviewed by AdvisorHub.

As part of the changes, which are being announced internally by U.S. wealth boss Jason Chandler, UBS is eliminating a net new asset award and consolidating a length of service bonus into its core payout grid. Both of the two bonuses had been paid in deferred compensation.

The new combined LOS and revenue grid will raise top-end payouts to as high as 60%, up from 50% under the 2021 plan, for those who have spent 20 years or more at UBS. But the new plan will also automatically defer 15% of that payout for producers over $750,000 in a year-end bonus that is paid in a mix of cash and stock and vests over six years. The deferred total will range between 10% and 15% for sub-$750,000 producers.

“We anticipate that over half of advisors will experience an overall rate increase,” the firm told managers in a talking-points memo they could use in rolling out the plan to brokers following the firm-wide call. “Our new grid will provide greater certainty, transparency and simplicity to your reward structure.”

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