Tracking Industry Compensation

COMPENSATION in the equipment finance industry increased moderately in 2019, according to ELFA’s 2020 Equipment Leasing and Finance Compensation Survey. Highlights from the survey include:

Total Compensation: Total compensation was up on a year-over-year basis for most functions and levels. On a “same store” basis (constant incumbents in multiple survey years), total compensation was up modestly (~3–5%) at median for key revenue-generating functions from 2018 to 2019.
Salary: Salaries were up on a year-over-year basis. On a “same store” basis, origination roles tended to have increases around 1% at the median and 3% at the 75th percentile. Salaries were up by 4% on average across all levels.
Differences by Level: Total comp increases were seen across all levels from the Entry through Managing Expert levels at the median. There were modest (~2%) salary increases seen at the median from Entry through Expert levels.
Leadership: At the executive level, cash bonuses for the 2019 performance year accounted for 44% of executive compensation while long-term awards accounted for 24%. Total incentives as a percent of salary—both cash bonuses and long-term awards—were 224% at the median.

The 2020 Equipment Leasing and Finance Compensation Survey measures compensation rates for the 2019 fiscal year as reported by more than 75 equipment finance companies representing a cross section of the equipment finance sector, including independent, bank and captive equipment finance companies. Firms provided data for more than 20 executive, front-office and support positions and 10 levels of seniority, including a breakdown of salary (for 2019 and 2020), incentives (including cash bonuses and commissions), long-term awards and total compensation by company type. The survey is a collaborative initiative between ELFA and McLagan, a performance/reward consulting and benchmarking firm for the financial services industry.