Morgan Stanley and UBS have given advisors a look at their 2027 compensation plans, leaving time to understand how the changes may affect their practices before strategic planning for the new year begins. Let’s take a look at what is known right now and what it might mean for you.
Morgan Stanley Adjusts Thresholds as Production Grows
Morgan Stanley is lifting the revenue thresholds on its core payout grid by roughly 10%. An advisor at $1.1 million in production this year would need $1.2 million next year to stay at the same payout percentage. The grid itself still runs from 28% to 55.5%. The firm has made a similar adjustment about every three years since at least 2014, and AdvisorHub’s sources say average advisor production is up 56% over the past three years.
The plan also rewards tenure, with advisors notching 30 years at the firm eligible to add 17 percentage points to their payout rate while in the Advisor Legacy Program, the firm’s sunset program. The increase applies to qualifying Legacy participants, not the general grid. In the example AdvisorHub cited, an advisor who qualified for a 40% payout could earn 57% in the first year of the program, with revenue credits stepping down after that.
The threshold change follows a 2026 plan that left the grid unchanged and cut deferral rates in half, shifting more of advisors’ pay into current cash.
UBS Keeps Its Grid Steady and Expands Incentives
UBS is leaving its core grid unchanged for 2027, as reported by AdvisorHub, with leadership emphasizing clarity and predictability. The headline addition is a growth bonus in Pathways, a program that advances payments from the firm’s ALFA succession program. Participants with above-average net new asset growth will receive an additional payment equal to 25% of their T-12 revenue, retroactive for those already enrolled. AdvisorHub reports the bonus is firm-funded and does not reduce future ALFA payments. Eligibility requires 10 years at UBS, and advisors must repay the funds if they leave.
UBS is also extending the lookback on its qualified new relationship award to 24 months from 15 and counting checking and savings deposits toward net new money awards. Early-career advisors get a new Pacesetter recognition tier.
The 2027 plan follows a 2026 plan that raised grid payouts by half a percentage point for $1 million to $3 million producers. Both came as UBS worked to steady its advisor ranks, with AdvisorHub counting at least 27 teams managing $28 billion leaving the firm in the first half of 2026.
When Might We Hear From Others?
UBS led the announcements last year, and Morgan Stanley followed two days later. This year they flipped, with Morgan Stanley going first and UBS coming about a week after.
Firm | 2026 plan announced | 2027 status | Latest known highlight |
|---|---|---|---|
Morgan Stanley | Sept. 18, 2025 | Announced Sept. 17, 2026 | 2027: Production thresholds up about 10% |
UBS | Sept. 16, 2025 | Announced Sept. 23, 2026 | 2027: Grid unchanged; Pathways growth bonus |
Merrill Lynch | Sept. 25, 2025 | Not yet announced | 2026: Grid payouts of 34% to 51%; $500,000 small household threshold |
Wells Fargo | Oct. 20, 2025 | Not yet announced | 2026: $13,500 monthly production hurdle |
What to Watch From Merrill Lynch
Merrill’s 2026 plan, unveiled September 25, 2025, kept its standard grid payouts of 34% to 51% unchanged and doubled the small household threshold to $500,000, as reported by AdvisorHub. When the 2027 plan arrives, advisors will want to compare any grid changes with Morgan Stanley’s higher thresholds and see whether the $500,000 threshold holds.
Wells Fargo’s Next Move
Wells announced its 2026 plan on October 20, 2025, keeping its $13,500 monthly production hurdle for a fifth straight year, as reported by AdvisorHub in its 2026 coverage. Sol Gindi, head of Wells Fargo Advisors, described the changes as carrots rather than sticks, including full payout on smaller accounts tied to wealthy households. His summary: “Inconsistency breeds distrust.”
In April, AdvisorHub reported that Wells had logged its third straight quarter of hiring advisors with $100 million or more in combined production. Advisors will be looking to see whether the hurdle holds for 2027 and which new incentives Wells adds.
How to Put the New Plans in Context
Advisors considering a move to these firms can now weigh the 2027 changes on facts rather than speculation, and those already curious about Morgan Stanley or UBS have concrete numbers to work with. The comp plan is one of the most visible pieces of that decision, along with transition packages, which remain competitive as firms vie for top talent. Retention programs like Legacy and Pathways show how these firms are valuing books over time and what they ask in return.
A grid rate is a useful starting point, but its effect depends on the advisor. Deferred pay, succession terms, product mix and firm support all shape what a plan is worth, and a higher grid percentage in an independent model means little until it is weighed against the overhead your current firm absorbs. 3xEquity can help you review the announced changes against your own production and compare opportunities using consistent assumptions, quietly and with no obligation.
We’ll update this story as more news comes in.
