We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
UBS to Cut Management Jobs, Overhaul U.S. Wealth Unit
Read MoreHide Full Article
UBS Group AG (UBS - Free Report) is planning to eliminate some management positions in its U.S. wealth-management division. In an interview, Tom Naratil, President of UBS Wealth Management Americas stated that the layoff will affect some senior and middle managers which will also include some positions at the unit’s offices in Weehawken, New York and New Jersey.
The Swiss banking giant also announced in a release that it is planning to reduce advisor recruitment by 40% and focus on retaining the best ones. The move forms part of the overhauling plans of the unit which also includes simplification of compensation plans for financial advisors.
The new compensation plan which is set to take effect next year, is focused on rewarding advisors on the basis of “productivity, growth and loyalty”. It calls for increased payouts for advisors who bring in the highest business and also includes incentives for advisors to form teams to benefit the clients. Notably, the document describing broker compensation is now reduced from 34 pages to just 8 pages.
Regarding the organizational structure, U.S. wealth-management wing will now be structured into four divisions, 43 markets and 208 branches. Previously, the unit operated though two divisions, eight regions, 63 complexes and 189 branches. With the reorganized structure, the company aims to delegate field leaders with enhanced control and transfer decision-making authority nearer to clients.
Naratil noted “We are realigning resources and investing in our people and platform, while putting a stake in the ground that relentless and costly advisor recruiting is not sustainable as a growth strategy in this industry.”
Citing Naratil’s comments in the interview, a report by The Wall Street Journal stated that the restructuring move is an effort to “eliminate the bad costs,” or expenses related to management overhead, bureaucracy and recruitment. Naratil added, “We’re shifting that into spending on technology, people closest to advisers and compensation for advisers who are here.”
Stocks to Consider
Currently, UBS carries a Zack Rank #5 (Strong Sell). Some favorably placed stocks in the foreign banks include Canadian Imperial Bank of Commerce (CM - Free Report) , Bank of Montreal (BMO - Free Report) and Royal Bank of Canada (RY - Free Report) , each sporting a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
UBS to Cut Management Jobs, Overhaul U.S. Wealth Unit
UBS Group AG (UBS - Free Report) is planning to eliminate some management positions in its U.S. wealth-management division. In an interview, Tom Naratil, President of UBS Wealth Management Americas stated that the layoff will affect some senior and middle managers which will also include some positions at the unit’s offices in Weehawken, New York and New Jersey.
The Swiss banking giant also announced in a release that it is planning to reduce advisor recruitment by 40% and focus on retaining the best ones. The move forms part of the overhauling plans of the unit which also includes simplification of compensation plans for financial advisors.
The new compensation plan which is set to take effect next year, is focused on rewarding advisors on the basis of “productivity, growth and loyalty”. It calls for increased payouts for advisors who bring in the highest business and also includes incentives for advisors to form teams to benefit the clients. Notably, the document describing broker compensation is now reduced from 34 pages to just 8 pages.
Regarding the organizational structure, U.S. wealth-management wing will now be structured into four divisions, 43 markets and 208 branches. Previously, the unit operated though two divisions, eight regions, 63 complexes and 189 branches. With the reorganized structure, the company aims to delegate field leaders with enhanced control and transfer decision-making authority nearer to clients.
Naratil noted “We are realigning resources and investing in our people and platform, while putting a stake in the ground that relentless and costly advisor recruiting is not sustainable as a growth strategy in this industry.”
Citing Naratil’s comments in the interview, a report by The Wall Street Journal stated that the restructuring move is an effort to “eliminate the bad costs,” or expenses related to management overhead, bureaucracy and recruitment. Naratil added, “We’re shifting that into spending on technology, people closest to advisers and compensation for advisers who are here.”
Stocks to Consider
Currently, UBS carries a Zack Rank #5 (Strong Sell). Some favorably placed stocks in the foreign banks include Canadian Imperial Bank of Commerce (CM - Free Report) , Bank of Montreal (BMO - Free Report) and Royal Bank of Canada (RY - Free Report) , each sporting a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>