UBS Creates Retention Plan To Keep Piper Brokers

In addition to pulling out all the stops to recruit top brokers (see page one), UBS has created a retention plan for Piper Jaffray's team of 800 brokers in hopes of convincing them to stay with the firm once UBS acquires its Private Client Group. Piper brokers producing at least $1 million annually will reap the most benefits, receiving 70% of their trailing 12 month's production upfront in a forgivable note, according to a Piper insider. Brokers who produced between $751,000 and $1 million will receive 65% and brokers who produced between $501,000 and $750,000 will receive 60%.

UBS paid $500 million in cash two weeks ago for the acquisition of the Minneapolis-based regional firm, slated to close at the beginning of the third quarter.

Brokers producing between $401,000 and $500,000 will receive 50% of their trailing 12; $301,000-$400,000 (40%); $200,000-$300,000 (25%) and those who produce less than $200,000 will receive 10%.

UBS put an aggressive package together in part because nearly 40% of brokers left Advest Group after Merrill Lynch acquired the firm last December, according to industry recruiters. Calls to Marten Hoekstra, head of wealth management U.S., were referred to a spokesman who did not return calls. Rich Schwarzkopf, owner of Schwarzkopf Consulting, adding that the acquisition will also help broaden UBS' national footprint. A Piper spokesman referred calls to UBS, and a spokesman there declined comment.