UBS has joined Morgan Stanley, Wells Fargo, and Merrill Lynch in unveiling updates comp plans for 2025 aimed at growth and profitability—but not without ruffling some feathers.

UBS made waves with its decision to abandon its unique team-based grid rate system in favor of what looks like a  “Best Ball” approach, where team members’ payouts are based on the highest producer’s individual revenue. For some high-performing teams generating $10 million or more in revenue, the shift could mean pay cuts of roughly 4%. Lower-producing advisors will also feel the squeeze, with core payout grid rates trimmed by as much as four percentage points for brokers under $750,000 in production according to reporting by AdvisorHub.

To offset these cuts, UBS is offering a revamped growth award with bonuses of up to 4.5% of revenue for hitting targets like net new money and client relationship growth. Banking product payouts are also seeing a modest bump, such as lines of credit increasing to 15% from 11%.

UBS’s focus on profitability comes amid scrutiny of its lagging U.S. wealth unit, which posted a 12% profit margin last quarter compared to Morgan Stanley’s impressive 28%. With cost pressures mounting, some brokers feel the squeeze, leaving many to wonder if the grass might be greener elsewhere.

A Look at Other Firms

While UBS has introduced some drastic changes, other wirehouses are taking a steadier approach:

• Morgan Stanley is sticking with its payout grid but raising the penalty box threshold for smaller producers, incentivizing referrals to other divisions with higher payouts.
• Wells Fargo is holding its core grid steady but hiking the small-household penalty threshold to $250,000 and offering bonuses for customer referrals to its banking division.
• Merrill Lynch is opting for the “steady as she goes” strategy, leaving its grid unchanged while doubling down on growth incentives for adding client households.

Should You Stay or Go?

As UBS’s shifts leave some advisors muttering about the “Best Ball” playbook and other firms adjust incentives, brokers may be wondering if their firm is still the best fit. If your pay or bonus structure is taking a hit, it might be time to explore greener pastures.

Transitioning firms is no small task, but it can be a career-changing opportunity. Working with a transition consultant like 3xEquity makes navigating these changes easier. From decoding how compensation tweaks impact your bottom line to assessing new opportunities, transition consultants bring clarity to a confusing process.

With 2024 winding down,now is the  time to take control of your future. Whether UBS’s “Best Ball” changes or other firms’ evolving plans have you considering a move, now is the time to evaluate your options—and maybe find a team where everyone gets to win.