UBS keeps 2027 advisor pay largely unchanged

UBS will leave its 2027 advisor compensation grid unchanged while boosting select bonuses and awards for client acquisition, investment returns and net new money. The bank described the changes as intended to make payouts more predictable and to recognize growth and performance without altering base payout rates.

Lisa Golia, head of the field for Global Wealth Management, wrote in a memo that the firm kept changes to a minimum and prioritized stability and consistency. Among the adjustments, UBS extended the look-back period for new-client acquisition bonuses from 15 months to 24 months, expanded opportunities for growth awards tied to net new money and increased rewards for strong investment returns.

UBS removed cash held in checking and savings accounts from the calculation for return-on-assets awards, saying such deposits typically do not appreciate and can dilute return measures. The bank introduced incentives to encourage clients to open UBS preferred checking and savings accounts and simplified the compensation advisors receive for arranging mortgages.

The firm broadened internal recognition programs by increasing the number of advisors eligible for its Directors Council and creating a new Pacesetter Recognition Council.

One rival recently raised the revenue thresholds required to reach higher payout tiers by 10 percent, a change intended to limit grid creep, the effect of rising asset values lifting advisor pay without new client inflows. Andrew Tasnady, founder of Tasnady & Associates, described UBS’s adjustments as “just all pluses” and noted the firm did not reduce grid levels and made modest, targeted tweaks.

UBS reports advisor headcount quarterly. The bank’s Americas wealth unit recorded 5,644 advisors in the most recent quarter, down 80 from the prior quarter. The unit’s cost-to-income ratio improved to 84.1 percent in the second quarter from 87.4 percent in the previous quarter.

At a recent industry conference, Chief Executive Sergio Ermotti attributed the wealth unit’s gains to executing ‘four or five levers’ and described the firm’s recruiting pipeline as healthy. Ermotti added UBS intends to remain competitive in recruiting without striking deals that are ‘value disruptive’ and expects to narrow the gap with peers.