UBS Financial Services Inc. has cut back on broker recruitment, but is still competing for top brokers, hiring two teams with about $450 million in assets for its office in Walnut Creek, Calif.
Thomas Melohn, a 25-year Morgan Stanley veteran, moved last week and Joseph Caselle left Merrill Lynch at the beginning of last month for UBS, according to their respective BrokerCheck profiles.
Mr. Melohn last year generated more than $1.5 million in fees and commissions with more than $200 million in assets, while Mr. Caselle produced just under $1 million in revenue with assets of $250 million, UBS spokeswoman Maya Dillon said.
Last year, UBS Wealth Management Americas announced a new compensation plan and said it was
going to cut back on recruiting by 40%, shifting its focus toward retaining top-producing brokers. Merrill Lynch and Morgan Stanley
followed UBS' lead this spring.
For decades, recruiting large-producing brokers has been the lifeblood of many retail brokerage firms. The downside for firms is the large expense that comes from huge signing bonuses, which traditionally have been two to three times a broker's annual revenue.
"We have cut back on our recruiting per a strong strategy built around organic growth," Ms. Dillon said. "However, we continue to be highly selective in our recruiting process, focusing on the best advisers in the country."
Both new UBS teams report to Erin Borger, market head, who covers northern California. Since taking over the post in October of 2014, Mr. Borger has recruited advisers who produce over $11 million in revenue to the Walnut Creek office, according to Ms. Dillon.
