UBS Financial Advisor compensation and reward

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 producers. According to a recent advisor recruit from a competitor firm: “I received an offer to join UBS and team with an advisor with a massive business was planning to retire in 10 years. He could help enhance my productivity, and we could achieve positive synergies working together.”

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

The join phase

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

We offer a traditional initial loan, monthly salary or back-end loans earned by the recruit and deferred compensation match for unvested deferred awards 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.

This phase rewards you based on the revenue credited to you over the length of your service at the firm. Our incentive grid rate generally caps out at 59.5% and includes production payout (cash) and year-end award.

In addition to your grid, we currently offer three components of a growth award to reward you for growing at UBS. For the net new money growth award advisors who reach the eligible growth rate can receive up to 2%. For the qualified new relationship award advisors can receive up to 1.5%. For the return on asset growth award advisors can receive up to 1%.

We also simplified and increased incentives for cash management by currently paying 5bps production credits across all cash balances and money market funds.

We currently 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 15%, 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.

Teaming is also a big part of how we best serve our clients, drive our industry-leading productivity and grow our business. We offer Highest Producer Grid (HPG) for highly productive teams.

Additionally, 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.

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

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 transition from 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. 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.