UBS keeps stacking up JPM Private Bank teams across the country. Another one just dropped as we were passed a note moments ago. This makes the third sizable move from JPM to UBS in the past six months.
Ryan Bristol and Patrick Schaffer are migrating to UBS in Los Angeles as this article is being penned. The team manages $2.5B in ultra-high net worth assets for clients and generate better than $26M in annual revenue. These moves follow large teams and assets of scale from JPM to UBS in Miami and Atlanta. And our intel tells us that the path from JPM to UBS is set to be followed by others.
Some background gives some context to the ‘why’ behind this move and others. JP Morgan Private Bank advisors manage huge books of assets and generate equally massive amounts of annual revenue – yet they get paid peanuts by way of an annual salary and a ‘subjective’ bonus at the end of each year. No comp grid whatsoever. JPM Private Bankers are, by any measure, wildly under-compensated.
UBS is able to offer teams like this a grid that pays them 50% of every dollar in revenue generated, plus a recruiting deal, and a retirement deal that is the envy of the industry. The numbers are remarkable and have opened the eyes of teams like Bristol and Schaffer. What follows seems to be speedy due diligence and asking questions like ‘why not’ instead of ‘why’ leave JPM.
The Grand Canyon-sized gap in overall cash compensation is hard to believe at first – JPM Private Bankers aren’t used to being treated like the belle of the ball. Once they verify the numbers, the philosophical debate is relatively short.
Digging a bit deeper into the work UBS has been doing in the ‘private banking’ space a clear pattern has developed. They are being aggressive with JPM, Goldman Sachs, and Alliance Bernstein. Take a look at the moves over the past six months:
– JPM Atlanta – Jeff Lewis and Steve May $20M
– JPM Miami – Brian Beranha and Vincente Del Rio $8M
– Goldman Sachs DC – John Hanley $9M
– Goldman Sachs Philadelphia – Scott Belveal and Adam Lambert $7.5M
– Goldman Sachs Boston – Denis Cleary and Greg Devine $20M
– Alliance Bernstein All Locations – moves that equal $40M
Again, the above moves have formed a clear pattern. For the likes of Ryan and Patrick, the difference in culture and ecosystem was reason enough to make the move. Will others follow? Count on it.
