UBS Loses Long-Affiliated Team Members to Morgan Stanley
UBS’ recent compensation changes have not been well-received by some advisors, and the firm recently lost two members of a long-affiliated team to its rival Morgan Stanley.
John Cunningham and his daughter, Lee Ann Cunningham, made the move from UBS to Morgan Stanley in Louisville, Kentucky. The Cunninghams were part of UBS’ Cunningham King Wealth Management Group and managed approximately $700 million in assets with $3 million in annual revenue production. Tracy King, their former partner, remains at UBS.
John Cunningham has had an extensive career in wealth management, starting at Merrill in 1983 and spending the last 25 years at UBS. Lee Ann Cunningham joined her father at UBS three years after starting at BlackRock in 2021.
Ron Edde, an industry recruiter and founder of Millennium Career Advisors, praised John Cunningham’s reputation as an advisor, community member, and colleague.
UBS and the Cunninghams did not provide comments on the move, while Morgan Stanley declined to comment.
UBS Acknowledges Unpopular Compensation Changes
UBS has faced significant advisor departures following changes to its compensation policies in late 2024. Wolfe Research reported that UBS lost 328 advisors in 2025.
During an earnings call on Feb. 4, UBS stated it ended the year with 5,772 advisors in its Americas unit, a slight decrease from the previous quarter but down 3.3% year over year.
CEO Sergio Ermotti admitted at the UBS Financial Services Conference in Key Biscayne, Florida, that some recent compensation changes were not well-received by certain advisors. Ermotti highlighted the decision to replace the Combined Team Grid with the Highest Producer Grid, aiming to reward top producers more than team members who do not contribute significantly to business growth.
A Balance Between Shareholders and Financial Advisors
UBS has adjusted its compensation policies to mitigate some of the changes made in late 2024. The firm aims to strike a balance between improving profit margins and keeping advisors satisfied.
Ermotti set a goal of increasing the U.S. wealth management division’s profit margin to around 15%, acknowledging that UBS lags behind competitors in this aspect. He emphasized the importance of aligning shareholder interests with the financial well-being of advisors.
Recruiting Continues at UBS Amid Losses
Despite ongoing challenges, UBS remains active in recruiting new advisors. Recently, the firm announced the addition of financial advisors Mark Lilley and Gabriel Trigo, who collectively managed $1 billion at Merrill before joining UBS in San Juan, Puerto Rico.
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