November 17, 2022
Louis Diamond Quoted
by Kathleen Laverty
Like its brokerage peers, UBS’ compensation plan has components of cash and deferred pay, with a traditional grid at its core.
However, UBS recently sweetened its recruiting deal by offering a higher up-front percentage of advisor’s trailing 12-month production — more than 300% plus reimbursement for unvested deferred compensation, said Louis Diamond, president of Diamond Consultants. The package included a significant salary component, which didn’t include any sort of “backend bonus, so the deal was fully guaranteed so long as the recruit stayed employed at UBS for 12 years,” Diamond told FundFire.
There doesn’t appear to be a consensus on how the major brokerages are handling next year’s payment plans, though big changes seem to be off the table.
The wirehouses are also increasingly focused on a fee-based revenue model from what was mainly a transactional one, Barron’s said.
