UBS Wealth Management USA released its 2026 compensation plan earlier than usual, a move widely seen as an effort to curb advisor departures after a wave of defections in 2025. As reported by AdvisorHub, the plan introduces grid adjustments, new team incentives, and expanded benefits aimed at softening the impact of prior cuts tied to the firm's cost-reduction strategy.
AdvisorHub reports that UBS will raise grid payout rates by 0.50 percent for advisors producing between $1 million and $3 million in annual revenue, reversing the half-point cut imposed last year. Most UBS advisors fall into this range, making the change particularly significant for younger, growing producers. For those generating between $3 million and $4 million, the firm will allow a larger portion of deferred compensation to be taken in cash rather than company stock.
At the high end, UBS set a 60 percent grid payout for $20 million individual producers and eliminated the prior length-of-service requirement. Previously, the highest payout was 59.5 percent for a $10 million producer with two decades of service.
According to AdvisorHub, the 2026 plan modifies the "new relationship" award by allowing credits to be shared across team members, even if contributions are uneven. Households with more than $10 million in assets will also count double. UBS will also ease restrictions for junior brokers producing less than $750,000 by allowing them to receive the highest producer's grid payout until they reach 10 years of service, provided they produce at least $500,000 beginning in year six.
After reducing payout on mutual fund trails in 2025, UBS is easing discount-sharing policies to encourage advisors to transition clients from brokerage to advisory accounts. Advisors will not face penalties for one year if at least 20 percent of a client's holdings are in mutual funds. The change applies retroactively to accounts transitioned earlier this year, as reported by AdvisorHub.
UBS will increase its broker expense budget contributions by $5,000 to $7,500, raising the maximum allowance to $17,500 from $10,000. The firm is also broadening access to its Aspiring Legacy Financial Advisor (ALFA) program by lowering the entry threshold to $2.6 million in annual revenue from the prior President's Club requirement.
Financial Advisor Transitions consults advisors nationwide to explore employment transition options and to preserve and protect their practice in any transition that they make.
