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UBS - Layoffs

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Apr 10, 2009 3:27 pm

SuperRecruiter , you mentioned free pay day or no impact to UBS recruits confirmed through valid source. Dose your valid source have any info on the criteria for new recruits that will be included in the massive layoffs? Will we be under a non-compete if they let us go? I assume if you don't have to pay back the upfront money you just pay the taxes for the 2009 tax year as ordinary income? I'm thinking if I don't have to pay back the upfront cash I may leave the business all together after 20 years in the industry. Sick and tired of all the bull**** and the recent downturn has me stressed to levels that can't be healthy!!

Apr 10, 2009 3:29 pm

I’ve heard any new rep that got a “deal” and is let go will be able to keep the deal no questions asked.

Apr 10, 2009 3:30 pm

Cowboy 93, the contract outlines specific reasons for UBS to terminate the contract… layoff due to massive restructuring and taking thier business model in a new direction is not included in the terminolgy.

Apr 10, 2009 3:43 pm
Polycarp:

UBS will expect the contract amount to be paid.  You will likely be able to settle for a lesser amount but you may need an attorney and then you have to do the cost benefit analysis.  No one is a union employee so your contract is a contract and they have the right to collect what you have not been forgiven in the “loan”.

    Firms do not get money back for letting brokers go for lack of production.  Anyone who says they do is full of it.  In a blanket cut brokers owe nothing who are on deals.
Apr 10, 2009 3:48 pm
Cowboy93:

Because that’s what the contract they all signed says.

  You are 100% wrong.  Firms do not have a leg to stand on to ask for money back when the broker is still showing up and working.  If the broker is fired for a major issue, unauth. trading etc they will ask for money back most of the time     They will not ask for money back on lack of production layoffs or letting a broker go who in their eyes is a low producer.
Apr 10, 2009 3:55 pm

Fritz, I hope you are right!

Apr 10, 2009 3:58 pm

Fritz is right. If you have doubts, I would suggest seeking professional legal advice and bring your contract with you.

Obviously, I can’t give up my source, but I am confident in what said individual had to say. The line is going to be drawn in the sand at $400k T12 REGARDLESS of LOS. UBS understands that they will not be able to go after money owed on existing contracts. It was referred to me as a "clean cut"

On a side note a non-compete would be nearly IMPOSSIBLE to enforce in a situation like this.

Apr 10, 2009 4:01 pm

[quote=RecruitingWhiz]I’ve heard any new rep that got a “deal” and is let go will be able to keep the deal no questions asked.[/quote]

This is true. We (somehow) managed to push through a $380k producer (third quintile by LOS) at UBS. He got a 240% deal about 4 months ago, and now we’re going to help him look for a new home, because he knows he’s about to get cut. Best of both worlds for this guy, the only reason he went to UBS is because he could not pass up the deal.

Apr 10, 2009 4:03 pm

Been at two places for 20 years, seen over 100 guys get let go who where on deals and ZERO have been asked to pay back.  Friend is manager at MS and he also said firms do not ask for money back for brokers getting let go to lack of production.  

Apr 10, 2009 4:15 pm

Good to know guys, I think I’ll go enjoy my Easter break, sit by the pool and have a cold one! Happy Holiday!

Apr 10, 2009 4:39 pm
SuperRecruiter:

This is true. We (somehow) managed to push through a $380k producer (third quintile by LOS) at UBS. He got a 240% deal about 4 months ago, and now we’re going to help him look for a new home, because he knows he’s about to get cut. Best of both worlds for this guy, the only reason he went to UBS is because he could not pass up the deal.

  I stand corrected...this guy--along with others in a similar boat--hit the lottery other than the hassle of having to move twice.  I want to hear of of one these people getting a deal somewhere else (much smaller I'm sure)...that would be the icing on the cake.
Apr 10, 2009 10:41 pm

I’ve got a tough time beleiving they would drop everyone below $400K especially folks they recently recruited.  That would be evil.  Clients and potential recruits would puke, shake their heads in disbelief, and look down on the firm for years to come.  In short, they would show the world all the two faced crap, from the “come here to grow your business branch managers” to the “sign this form that says you can’t call inheretid clients” branch managers."  Oh wait, same people… 

Apr 10, 2009 11:27 pm

Cut $400k across the firm, or $400k in metro areas?  I had heard line in sand is $300k (at least in my suburban area).

These cuts you are referring to - are they related to the FA's that were given a "business plan" 3-4 weeks ago?  Or is this another round of cuts?

 
Apr 10, 2009 11:31 pm

My understanding is that only new recruits who have been at UBS for 2+ years will be included in the potential pool of FA’s who could leave.



As far as owing money to UBS, you have a contract with the firm. Naturally, you will owe the $$$ if you leave. And yes they will go after you.



I do not believe that there will be that many individuals who have EFL’s outstanding and are in the bottom 20%. Trainees are another matter, I do not believe they will go after them for $$.



My understanding is that most of the FA’s who are going to be let go have already been told by there managers, they already have the list.



If I was on a deal and thought I was going to be let go, I would go talk with my manager. In the meantime, talk to someone about moving, just do not do anything until you have been formerly told by UBS. UBS subscribes to the broker protocol for switching firms. If you are nervous look up what information you can take with you and run the appropriate report On Business Intelligence or Book Querry.



Just do not panic and do something that is stupid.



Personally, if I were in this situation, I would speak to Stifel if they have a location near you. I have been told that they might buy individual brokers from UBS that are let go if in there markets. That would be good for you as they would then do a bulk transfer of your assets to Stifel

Apr 10, 2009 11:36 pm

I know this has been asked a few times.  If you’re at 300K and you were just “teamed up”…you’re vulnerable?

Apr 11, 2009 1:50 am

So…Superrecruiter, Secretknowledge, et al.  Some are saying the minimum production needed to avoid being cut is $300K or if you’re not in the bottom quintile.  Others are saying the line in the sand is $400K.  So which is it, my friends?  If you’re blowing smoke on this forum, regarding such a sensitive topic, then get the he\ out of here.  If you’re confident of your numbers and your sources, please confirm that, and to you we all owe a debt of gratitude.

  By the way, I know of several FA's who have a T12 <$400K, and their managers have assured them they they are not going to be let go.  So the $400K "line in the sand" seems a bit overstated, if you ask me.   LA    
Apr 11, 2009 2:18 am

[quote=SuperRecruiter]

[quote=RecruitingWhiz]I’ve heard any new rep that got a “deal” and is let go will be able to keep the deal no questions asked.[/quote]

This is true. We (somehow) managed to push through a $380k producer (third quintile by LOS) at UBS. He got a 240% deal about 4 months ago, and now we’re going to help him look for a new home, because he knows he’s about to get cut. Best of both worlds for this guy, the only reason he went to UBS is because he could not pass up the deal.
[/quote]

And you and this producer think this is a good thing?  Something to celebrate?  Meanwhile his clients heads are spinning.

No wonder our industry has such a bad reputation and nobody disagrees when I refer to the wirehouses as “formerly” major firms.

Apr 11, 2009 2:43 am

It seems as though UBS would have to consider keeping some of their recruits considering the brokers that will be laid off will have clients that need to be placed. The upfront money has already been paid out, it's not really costing them anything other than office space. 

Apr 11, 2009 2:45 am

There is a guy in my office doing around $300, and he was told by the BOM that he is not going to get cut. Also, teams are the focus of UBS going forward, and individuals on teams are safe.

Apr 11, 2009 3:06 am

[quote=Raindog]There is a guy in my office doing around $300, and he was told by the BOM that he is not going to get cut. Also, teams are the focus of UBS going forward, and individuals on teams are safe.[/quote]

That will make it that much sadder when it happens…

Remember when they said Lehman wasn’t goinf BK, and Wachovia was a healthy Bank…etc etc…you can’t trust these big banks as far as you can throw them