Merrill Lynch’s new recruiting deal, which rewards advisors who are able to grow their business over the next five years, appears to be creating a stir over at UBS. Merrill has recently hired three million dollar-plus teams from the Swiss-based firm.

UBS is the only major wirehouse whose top advisors aren’t locked into retention packages. That, combined with disillusionment at the raft of negative headlines surrounding the UBS tax evasion case, makes UBS advisors prime targets, says Houston-based recruiter Rick Peterson.

According to industry sources, under the new recruiting deal being offered by Merrill, new recruits can earn 140% of their trailing-12 production upfront and then earn a percentage of their actual production in annual bonuses, as follows:  In the first year: 60% of actual production; 50% in the second year; 40% in the third year; 30% in the fourth year and 20% in the fifth year.

But, of course, there’s a catch. In order to earn these bonuses brokers have to reach certain asset targets. In the first year brokers have to have transferred 65% of their original assets; in the second year, it’s 90%; third year, it’s 110%; fourth year, it’s 125% and fifth year, it’s150%. Essentially, this means that brokers must have increased their assets by 50% by the end of the fifth year.

The deal offered enough incentive to lure 29-year UBS/Paine Webber veteran Carl Cascella, along with his partner Vincent Condon, who worked at UBS for 18 years, to Merrill Lynch’s branch in Southbury Conn. The team previously generated $1 million on client assets of $227 million.

Meanwhile, in Providence, R.I., John Licciardello, Charles Wharton and Joel Raskin, also jumped from UBS to Merrill. The team previously generated $1.6 million on client assets of $207 million.

And Jonathan Hungerford, Gary Duncan and Annette Proulx joined Merrill’s branch in Clemson, S.C. The team previously oversaw $117 million in client assets and generated $1 million in fees and commissions.