Partnership comp ensation Plans

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Mar 17, 2009 9:51 pm

I am wondering what type of partnership grids other firms have? 

i.e. 
If your team does $1,000,000 revenue and you are in a 75/25 split:
 
1.  Does the senior partner get 750k pd out at the grid of 1 million? and
the junior gets 250k at 1 million grid?
 
or
 
2.  Does your firm make you take the split and then grid at each of your levels really penalizing the junior partner?
 
Our firm right now does the first one but is looking to change it.  I heard UBS has the first one also but haven't had that verified.  Please share with me other firms grids. 
Thanks in advance
Mar 17, 2009 9:59 pm

UBS does not have #1...



ALL team members are paid out at the grid of the top producer (750k), but not at the team production ($1 million)



Smith Barney is the same way from my understanding



ML screws everyone...they pay out at whatever you the FA produces (one FA paid out at 750k, the other at 250k - this is one single reason you're seeing massive upheaval at teams at ML...either teams are being formed to avoid the 250k producer getting a big paycut, or you're seeing the teams leave for a firm that pays everyone out the same

Mar 17, 2009 10:39 pm

UBS combines the gross of partnership and you all get paid on that highest grid %.

team must sign an agreement that if they bolt existing member keeps accounts.



its a huge advantage if your ok with agreement

Mar 18, 2009 1:24 am

not true...i'm looking at the 2008 UBS "signature team" page...and it says:



"payout on production-based team revenue will be based on the highest producer's grid rate"...which means they don't gross up the grid to total team production - they take each partners % of production, and slot the highest producer at his slot, then pay everyone else on the team at that same rate...



if they gross up to total team revenue, then everyone got paid at that grid, then everyone in my office would join as one "team", and do $10M or more in production, and get paid out at a monster rate

Mar 18, 2009 8:35 pm

Joe is correct. its a the highest team members level not the team added together at UBS.



I would imagine MS goes toward this as SB has it too.

Mar 21, 2009 11:49 pm

Thanks for the info on UBS and SB.

Mar 22, 2009 12:55 am
JoeNatlanta:

not true...i'm looking at the 2008 UBS "signature team" page...and it says:

"payout on production-based team revenue will be based on the highest producer's grid rate"...which means they don't gross up the grid to total team production - they take each partners % of production, and slot the highest producer at his slot, then pay everyone else on the team at that same rate...

if they gross up to total team revenue, then everyone got paid at that grid, then everyone in my office would join as one "team", and do $10M or more in production, and get paid out at a monster rate

 
You got it.
Mar 22, 2009 11:20 pm

Teams at UBS get paid on the grid of the highest producer. So, if you're an NFA and your grid is 20 or 30%, and the Sr. member of your team is at 48%, you would get paid at the higher grid.