UBS Boosts Payouts for US Wealth Advisors to Stem Defections

Core Insights - UBS Group AG is increasing payouts for its wealth advisers in the US to attract and retain talent amid competitive pressures [2][3] Compensation Changes - UBS will implement changes to adviser compensation starting January 1, which include raising rewards for several thousand wealth advisers in the US [2] - A new compensation tier has been created for top advisers generating over $20 million in revenue, with UBS paying out 60% of the business generated [4][6] - The bank is increasing cash payouts for advisers generating between $3 million and $4 million, and increasing the pay rate for those generating between $1 million and $3 million [6] Business Strategy - The changes come in response to reports of departures among UBS-affiliated wealth advisers, with some moving to rival firms [2] - UBS has faced challenges in expanding its wealth management business in the US, which has the highest cost-to-revenue ratio among its global operations [3] - The new compensation structure also considers length of service, rewarding brokers for their loyalty, and focuses on net new money, return on assets, and new client relationships [5]