Chillin' out till it needs to be funded
UBS Financial Services has added more than 400 brokers to its 8,000-strong network in the past few months, insiders say.
The moves have enraged rivals, who claim the Swiss group’s big pay offers have triggered a costly price war for brokers when most banks, including UBS, are struggling to cope with losses.
Merrill Lynch is believed to have lost more than 100 brokers to the group.
UBS denies it pays over the odds for brokers. “We have no interest in running a business that can only hire talent by being the high bid,” wrote Marten Hoekstra, US head of wealth management, in an internal memo.
Documents seen by the FT show that UBS offered brokers at a rival firm compensation of about 260 per cent of the previous year’s profits to switch over.
People close to UBS confirmed the offers were made late last year but said the packages were in the range of 200-220 per cent.