New York City-based UBS Wealth Management Americas (WMA) announced Thursday it adopting a new operational structure, and a new compensation model for advisors, while also reducing recruiting, as part of an overall strategy designed to move decision-making and resources closer to clients, increase advisor retention, and drive organic growth.
Specifically, the firm says that it is reducing advisor recruiting by 40%, and altering its advisor compensation plan to increase payouts for advisors with the largest books, and to create incentives for advisors to form teams.
“We are realigning resources and investing in our people and platform, while putting a stake in the ground that relentless and costly advisor recruiting is not sustainable as a growth strategy in this industry,” says Tom Naratil, president Americas and WMA, in a statement.
The firm is also modifying its compensation plans for managers “so that they are both rewarded and held accountable for the decisions they make,” UBS Americas says. It is also eliminating a layer of regional management and revising its office structure to move “decision-making authority closer to clients.”
These changes follow the firm’s recent investment and strategic alliance with SigFig to develop financial technology for the retail brokerage business.
“Together, these changes help minimize bureaucracy and eliminate obstacles that can distract us from improving our clients’ lives, while expanding our advisors’ capabilities and enhancing the client experience,” adds Naratil.