UBS Wealth Management Americas unveiled a new compensation structure for its branch managers and complex directors last week, creating more standards for them to meet individually to increase the size of their bonuses.
UBS’ branch managers and complex directors are typically compensated through a combination of salary and bonuses. Those bonuses include both include measures based on overall performance and individual, or subjective, performance.
The firm has now chosen to place more considerations on the subjective side of the bonus, UBS Wealth Management Americas CEO Bob McCann announced at a meeting last week. News of the compensation changes was first reported by Dow Jones and confirmed by UBS Spokeswoman Karina Byrne.
The new subjective metrics will include four elements relevant to an individual’s performance, Byrne said. Those are: quality of business results delivered, such as revenue growth plus same store net new money penetration; delivery across multiple areas of the firm, including helping financial advisors work with other UBS wealth management, institutional management or investment bank operations; leadership, such as contributions to the community; and overall management quality, with positive audits and few to no arbitrations or litigations.
UBS has always had “significant subjective weighting,” Byrne said. “This year it’s just a bit broader.”
Those broader measurements are not designed to reduce overall compensation for the branch managers or complex directors, according to Byrne.
“It doesn’t mean that people can’t make just as much or more money,” Byrne said.
UBS plans to add 400 new advisors to its U.S. wealth management practice this year. Those hiring plans are aimed at keeping UBS’ advisor force at 6,500 to 7,000. In the third quarter, UBS had 6,783 advisors, Byrne said.