Under the leadership of former Merrill Lynch executive Bob McCann, UBS Wealth Management Americas has introduced a new recruiting package.
Though UBS' latest recruiting package isn't quite as high as those being offered by Morgan Stanley and Bank of America/Merrill Lynch, experts say, it has grown and now represents as much as 260 to 280 percent of yearly advisor revenue, or production, up from 220 percent.
"McCann has said that he didn't want UBS to be offering the biggest deal on the street, which it isn't," says Mindy Diamond, president of Diamond Consultants in Chester, N.J.
UBS now includes some 7,300 FAs in the Americas.
The firm's latest recruiting offer includes an upfront cash payment of 130 percent of trailing 12-months' sales. It is being extended to advisors in the top two tiers, or 40 percent of advisors, according to UBS, which says the top tier production level is roughly $500,000. There are also four asset-based bonuses offered for the first four quarters of the first year.
Overall, the wirehouse's latest recruiting efforts feature asset targets and backend bonuses based on future growth, as opposed to trailing 12-months' production.
"These [wirehouse recruiting packages] are really deals that are structured for the growth-oriented advisor," explains Diamond. "Though 140 percent in cash upfront is a lot, it's not necessarily enough to make [every] advisor move."
