UBS will keep its core advisor compensation grid unchanged in 2027 while expanding incentives for growth, banking business, and advisor retention, according to Financial Planning. The strategy follows advisor departures after the firm revised its compensation policies in late 2024 to push lower-producing advisors to generate more revenue and improve profitability.
Lisa Golia, head of the field for UBS Global Wealth Management, said the firm designed the new plan to make compensation more predictable and avoid significant or unexpected changes. UBS gathered advisor feedback in recent months and prioritized stability while adjusting select awards.
The decision contrasts with Morgan Stanley's 2027 plan, which raises revenue thresholds by 10 percent across its core payout grid. UBS's unchanged grid means advisors generating $1 million in annual revenue will continue to receive $495,000 before awards or bonuses. Those generating $2 million will receive $1.03 million. According to Financial Planning, those payout rates ranked first and second, respectively, among wirehouses at those production levels in 2026.
Compensation consultant Andrew Tasnady told Financial Planning that UBS's plan stands out because it avoids the mix of positive and negative changes that firms often announce each year. He called the adjustments a positive development, particularly because UBS left the grid intact while improving select incentives.
UBS still faces retention challenges. In July, the firm reported that its Americas wealth management unit, which includes the United States, Canada, and Latin America, had 5,644 advisors, down 80 from the previous quarter. However, the unit's cost-to-income ratio improved to 84.1 percent in the second quarter from 87.4 percent in the first. CEO Sergio Ermotti attributed the progress to the unit's execution across several initiatives and said UBS has a healthy recruiting pipeline. He expects the firm to continue narrowing the gap with competitors.
UBS will also expand its Pathways to Plus program, which allows eligible advisors to sell part of their books of business to UBS if they agree to retire at the firm. More high-producing advisors will qualify, and participants who meet certain net new money targets can earn a bonus equal to 25 percent of their prior year's revenue. A source familiar with the program told Financial Planning that this bonus will not reduce future payments through UBS's Aspiring Legacy Financial Advisor Program, or ALFA, which allows advisors to sell their entire books of business to UBS before retirement.
Financial Planning reports that other 2027 changes will extend the growth-award eligibility window for new clients from 15 to 24 months, allow restricted stock to count toward net new money awards, and exclude checking and savings balances from return-on-asset awards.
UBS will also add incentives for preferred checking and savings accounts, simplify compensation for mortgage and commercial loan referrals, and expand access to its advisor recognition programs.
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