UBS Warburg is giving PaineWebber brokers retention packages of stock and options. No cash was offered.
The bonuses are part of the UBS takeover of PaineWebber, announced July 11. The details were revealed to brokers the following week (see "UBS Retention Package," right).
An SEC filing by PaineWebber said UBS was committing 875 million dollars in both cash and stock for retention costs. A PaineWebber spokesperson would not comment about the value of the broker package. He referred questions about the cash component to UBS, which did not return calls.
Top producers seem pleased. "They could've sweetened the pot a little more, but I'm really happy," says a Chairman's Council member in the Southeast.
"The [bonus] money is a very fair incentive," adds a Midwest President's Council member.
While admitting the package is a golden handcuff, another President's Council member on the West Coast says: "So what? Any firm is going to have to at least match that to get me to leave."