UBS' 2025 compensation plan, unveiled to 6,000 advisors, includes changes that affect both team and individual payouts. While the firm aims to align advisor compensation with its strategic goals, some veteran advisors and large teams are dissatisfied with the upcoming shifts, as reported by AdvisorHub.

Starting January 1, UBS will alter how it compensates team members. Currently, UBS advisors on a team are paid based on a combined grid rate, determined by the team's total revenue. In 2025,  advisors will no longer benefit from a combined grid. Instead, team members' compensation will be based on the revenue of the team's highest-producing member. For instance, in a team generating $10 million, the pay rate will depend solely on the $5 million brought in by the top producer, rather than the combined total. According to AdvisorHub, this may result in a nearly 4 percent pay cut for some high-revenue teams.

Additionally, AdvisorHub reports that UBS is reducing payout rates on its core grid, which will impact lower-producing advisors the most. For example, advisors generating $1 million to $2 million in revenue could face a half-percentage-point reduction, while those earning less than $750,000 might see their rates decrease by two to four percentage points.

On the flip side, UBS is enhancing its growth award incentive. This program allows advisors to earn a cash payout of up to 4.5 percent of their revenue based on performance metrics, such as net new money, growth in qualified client relationships, and an increase in return on assets. UBS is also raising payouts on certain banking products to drive sales in that sector. For example, payouts on lines of credit will increase to 15 percent of revenue, up from around 11 percent, according to AdvisorHub.

Financial Advisor Transitions consults advisors nationwide to explore employment transition options and to preserve and protect their practice in any transition that they make.