And UBS’s global reach could allow PaineWebber brokers to sell a broader variety of investments, including derivatives.” UBS has a much bigger investment-banking presence. In the past, the firm has had a small investment-banking unit, so brokers largely were deprived of selling initial public offerings of stock to their clients. “To be sure, there are reasons why PaineWebber brokers might want to stick around as the UBS deal takes shape. in 1994 then, it offered some brokers a retention package of stock and cash totaling about 40% of their trailing 12-month production, according to people familiar with the matter.” And it mirrors the move PaineWebber made when it bought Kidder, Peabody & Co. “This would ‘lock in’ brokers for long enough to make the deal a success, a PaineWebber official says. But PaineWebber brokers say they have heard the firm will offer a package in which they will receive as much as 40% of their total production for a year in stock, payable over around three years.” “A PaineWebber spokesman declined to comment on specifics of the retention plan neither Mr. UBS has set aside a $875 million retention pool to help keep talent from fleeing to other firms.” As early as Thursday, PaineWebber President Joseph Grano and Mark Sutton, its brokerage chief, plan to unveil a retention package in a bid to persuade brokers to stay. “So PaineWebber officials plan to act quickly. ‘There’s an awful lot of anxiety there.’ “ ” ‘If brokers want to leave, there’s nothing in this deal to make them stay unless they see in the next few months that the new firm is a much better investment firm-and that has yet to be answered,’ says Rick Peterson, a brokerage recruiter in Houston. This means PaineWebber risks having its brokers bolt to rivals if firm officials can’t provide additional incentives for them to stay.” “But under the terms of the UBS-PaineWebber deal, the shares vest when the deal closes in November (such vesting is common in mergers).
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |