UBS to Cut Brokers < $400K

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Sep 26, 2009 11:53 am
A good friend of mine is close to Michael Schweitzer.
 
Schweitzer told him that UBS plans on cutting all brokers doing less that $400K with more than 5 years of industry experience.
 
Apparently, this is a Jamie Price model.  All accounts over $250K go to the brokers that they recruited.  The other account go to that National Client Center.
 
Price did this a Pru.  Its the only way he can justify all of the money spent on recruiting.
Sep 26, 2009 12:34 pm

I do not think that this will happen. Especially the second part about reassignment of accounts. Everything $250,000 goes to the emerging affluent center when an FA leaves unless the branch manager decides there is a reason for it to stay in the branch. The rest of the accounts go in to a system that assigns them on a random basis based on qualifications. This was created for HR issues related to favoritism of handing out accounts.

Sep 26, 2009 1:02 pm

Not sure about your office.  That is exactly what happened in mine.  All of the households below $250K go to the call center.  They did it on Friday when they let go of the rookies.  They did it a couple of months ago when they cut to $250-275K.  They will do it again and again.

 
This way, they don't have to pay an advisor.  The call center people are all on salary.
 
This may also be coming from McCann.  Remember, he didn't think there was any value on brokers below $400K when he was at Merrill.  Why would he now?!?
Sep 26, 2009 1:07 pm

What about jrs on teams?  Will they ever bee vulnerable?

Sep 26, 2009 1:20 pm

I haven't a clue.

 
Feels like a sinking ship.  Price and his theifdom keep throwing everything overboard in hopes it stays afloat:
 

Cut small clients
Cut payout
Cut sales assistants
Cut trainees
Cut brokers <$250K
Cut brokers <$400K
Cut branch managers
Cut manager pay
Cut regions
Cut areas

I have never seen a company shrink to greatness.  You really have to look at the final years of Prudential Securities.  Its right out of his playbook.  Play for play.  The only thing he hasn't done is bring back that knucklehead Mike Rice.


Sep 26, 2009 5:22 pm

This is a complete load of BS.  If UBS cut all brokers under 400K they would be down to 3000 brokers. 

 
 
The firm probably will get down to 5000 brokers from 8000 and weed out most brokers doing under 350K, but that will take several years.
 
 
You are probably a recruiter trying to scare people on this board.
 
 
 
Sep 26, 2009 5:36 pm

I bet those offices SF bought are VERY happy right now!

Sep 26, 2009 7:41 pm

How about fire everyone and send all the accounts to the call center !!  That would make more sense than what you are saying.

Sep 26, 2009 8:59 pm
UB-YOU:

I haven't a clue.





I have never seen a company shrink to greatness. You really have to look at the final years of Prudential Securities. Its right out of his playbook. Play for play. The only thing he hasn't done is bring back that knucklehead Mike Rice.











You are correct. Just like PRU.   



I sense that all of them are gone and the guy from MER is coming in like a savior.   I think wolf, price et al have worn out their welcome with the Swiss.   I think Price is hoping he can save his ass with the new guy.   I doubt it. Everyone hates the guy and I think MER guy will clean house since people are so angry and their rep is so tainted.



Mike Rice great call.    What a loser that guy was.           

Sep 26, 2009 9:05 pm
nestegg:

I bet those offices SF bought are VERY happy right now!







You and SN need to get a room order some kool-aid from room service

Sep 26, 2009 9:05 pm
wolverine1945:

This is a complete load of BS. If UBS cut all brokers under 400K they would be down to 3000 brokers.





The firm probably will get down to 5000 brokers from 8000 and weed out most brokers doing under 350K, but that will take several years.





You are probably a recruiter trying to scare people on this board.







The Hokester told us all that if we were not doing 500k or better we probably worked for the wrong firm. Would the Hokester lie?

Sep 26, 2009 9:16 pm
secretknowledge:

I do not think that this will happen. Especially the second part about reassignment of accounts. Everything $250,000 goes to the emerging affluent center when an FA leaves unless the branch manager decides there is a reason for it to stay in the branch. The rest of the accounts go in to a system that assigns them on a random basis based on qualifications. This was created for HR issues related to favoritism of handing out accounts.

 
I think SecreKnowledge is right.
Sep 27, 2009 6:59 am

250k to call center will happen, they just want ultra high net worth, to bad they won't want UBS

Sep 27, 2009 8:44 am

Call center eyy,  easy pickens for a cold call.

 
Thanks UBS
 
Oh that's right! cold calls don't work LOL.
Sep 27, 2009 8:48 am
[/quote]

The Hokester told us all that if we were not doing 500k or better we probably worked for the wrong firm. Would the Hokester lie?[/quote]



The Douchester used to a broker?   Him and Price will be cold-calling uber high rich people very soon.
Sep 27, 2009 1:52 pm
 
I'm not sure why anyone thinks these "leaders" are worth anything.  2009 is shaping-up to be the year of the retreaded CEO/President:
 
Name                       Removed from                   Retreaded to
Sallie Krawcheck      Smith Barney                     Merrill Lynch
Bob McCann             Merrill Lynch                      UBS (in process)
Jim Gorman              Merrill Lynch                      Morgan Stanley
Jamie Price               Prudential/Wachovia         UBS
 
If they couldn't do the job at their old firms, why do you think they'll be able to do anything new or different at another.

 
Sep 28, 2009 8:43 pm

Im not liking a lot of the direction of UBS right now but I disagree with original poster.  Account re-assignments are very much governed by HR (random and fair) recruits are not eligible for 1 yr.

However if you are LOS 10+ and not doing 400k or better you should worry (or get to work) {Unless of course your now a producing bom and need to start from scratch }. UBS is not the place to be for a solo producer that long in biz doing low numbers.

Another poster said UBS had "Paycuts" to FA's, thats also not true. households under 50k have 0% payout but larger and fee based accounts recieved a signifigant pay increase. UBS increased FA pay in 2009 by about 7-10% for advisors (especially signature teams)

signature teams = at least one q1/q2 FA and at least 70% of aum shared in joint number.

Sep 28, 2009 9:48 pm

UB-You - you are dead on...



Sr. Management = No accountability; just re surface at another firm. Promote another idiotic corp. agenda and explain why it's good for clients and advisors. FA's have their a$$ on the line every day and risk firing from clients if they do not perform. Management isn't accountable - they take care of their own and just pop up at the next firm. They know best and we need them to lead and coach us!



ABOM - they raised payouts to tilt asset flow to lock in FAs with certain products and encourage 'teaming'. I read the internal stuff on how coaching retains advisors and teaming does as well.



Teams = team agreement laden with lock down legal verbiage that keeps assets sticky; let us incentivize you to team up and sign a team agreement so you can't take confidential client data or recruit employees (your CSA). The team agreement is dangerous, but a lot of oofice insist you must sign to benefit from the team payouts and to be an official team.



What an ensnaring crock of ________ . Total institutionalization of clients and overt agenda to convince FA's they should be on teams. They encorage large FA's to team up too and sign a team agreement with their jr. partners. Too bad the management is so focused on teaming and locking FA's into the firm rather than realizing how to improve some of the things they do well and encourage entrepreneurial culture. That is gone and the "leaders" have ruined the place.



Let's be honest - UBS isn't the best place for solo producers doing big #'s either.



Sep 28, 2009 10:23 pm

Unless you run a Ponzi,  ohh yea I know!!!

Sep 28, 2009 10:26 pm

The scheme was "you and us" and the "us" got paid got paid form "you"