Goldman Sachs wealth managers have traditionally been very difficult to pry away from the firm that they’ve spent nearly their entire career with. Beyond brand loyalty their have been a few well known reasons for the ‘stickiness’ of GS folks and their clients. Employee contracts, non-solicit and non-compete policies, and even garden leaves are trail of tears that follow Goldman Sachs advisors when they leave.
Still, the books they bring with them are some of the biggest on the street and are highly sought after. UBS has decided that the ask is worth the price and has decided to focus on recruiting Goldman Sachs teams in money-center cities across the US. And the deal they are offering is uniquely aggressive.
In speaking with a recruiting contact that is familiar with both firms, the deal was laid out for us… and under some circumstances could stretch beyond 500%. Yes, you read that right.
Per our contact:
”Here is the deal for guys at GS. It is between 250-275% (not including deferred) of production with a combo of upfront and back ends. Importantly, this is a guaranteed deal and they also offer members of the team to retire so the total deal computes out to 550%. Huge commitment by UBS.”
Huge commitment indeed. The numbers speak for themselves. Say you are a team founder and 50 years old, with an ya production of $6M. Doing a little ‘back of the napkin’ math and that’s better than $33M dollars over the final decade plus of your career. Not bad work if you can get it.
So yes, UBS has made a commitment to find and reel in Goldman Sachs teams; and clearly are happy to pay whatever price is needed to book em’.