UBS places certain American bankers in a “Penalty Box”
The Swiss wealth manager is said to have cut rewards for US brokers who do not produce as much as they would like.
UBS is rolling out a new payment “grid” for its US brokers, which eliminates some deferred salaries, the trade publication “Advisor Hub” reported, citing an internal document. More specifically, the American brokerage Jason chandler is taping new net assets as well as a consolidation of seniority bonuses at UBS in its basic payment schedule.
The move aims to boost profitability with a focus on productivity in the United States, which accounts for the bulk of UBS’s $ 3.2 trillion wealth unit, co-managed by Iqbal Khan and Tom naratil. The unit, the cornerstone of which is the acquisition of Painewebber by the Swiss bank in 2000 for 12 billion dollars, is the backbone of global wealth ambitions.
Alienate new brokers?
UBS’s new grid will likely result in salary cuts or more deferrals for some of the bank’s brokers, depending on their tenure, the number of new business they’ve brought in and whether they’re part of a team, depending “Adviser Hub”. On the other hand, it may alienate some “high-yielding” brokers who are newer, as it will tie salary more directly to seniority, the publication reported.
Khan and Naratil seek to replicate in the United States what UBS is doing in Asia, Latin America or Switzerland: being and doing everything for and for wealthy clans who have sufficient volume to deserve the attention of bankers from investment. Locking down this customer segment globally, including in the United States, would lend credence to UBS’s ambitions to be a true global wealth manager, as opposed to an international private bank with a significant brokerage branch in the United States.