Some employees will be smiling.
UBS added a bonus for its 7,000 U.S. brokers to encourage them to create financial plans for wealthy clients.
Bloomberg reports that the advisers will be paid a bonus of as much as 4% in deferred compensation of the revenue generated from clients who received a plan, according to Gregg Rosenberg, a spokesman in New York. The bank also increased some brokers’ expense allowances by $500 to $2,000 each, Rosenberg said.
The biggest U.S. stock brokerages are encouraging advisers to draw up more-formal financial plans for clients rather than recommending individual securities or mutual funds.
The Wall Street Journal also reports that many UBS advisers will also get slightly bigger expense accounts, which will range from $500 to $10,000 based on productivity.
The changes 'are designed to focus on our business building efforts around high-net-worth and ultra-high-net-worth households', said Jason Chandler, the head of UBS' wealth adviser business.