UBS has sought to revive its veteran broker recruiting efforts by offering top-end recruits as much as 550% of their annual revenue. In April it reeled in a broker at Bank of America’s Merrill Lynch who produced $8.6 million. That broker had already left Merrill about two weeks before starting at UBS, according to registration records.
UBS has previously shown its willingness to pursue private bankers aggressively. During a recruiting push five years ago, it upped offers specifically aimed at private bankers.
“Firms know the disparity in portability, so the smart ones structure deals that reward the upside and still provide a soft-landing zone for the banker, while balancing their out-of-pocket cost/risk,” industry recruiter Louis Diamond wrote in an email.
Private bank breakaways generally end up transitioning around a quarter of the assets they were managing, Diamond wrote. Some have more success depending on how loyal their customers are to the bank, other recruiters have said.
Private bankers can be swayed to join firms like UBS which have “a grid based/entrepreneurial payout, more investment flexibility, the ability to build out their own team, and the desire to retain a balance sheet and top-tier brand,” Diamond added.
