New Survey Reveals Industry Pay Trends

Compensation in the equipment finance industry returned to steady increases in 2021, according to the 2022 Equipment Leasing and Finance Compensation Survey. New business volume increased over 7% in 2021 after a notable decline in 2020 — and compensation followed a similar trend. The survey is part of the Knowledge Hub, ELFA’s source for business intelligence on the equipment finance industry.

The 2022 Equipment Leasing and Finance Compensation Survey measures compensation rates for the 2021 fiscal year as reported by more than 80 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 90 executive, front-office and support positions and 10 levels of seniority, including a breakdown of salary (for 2021 and 2022), 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.

Highlights from the 2022 Equipment Leasing and Finance Compensation Survey include:

Total Compensation: Total compensation increased 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 approximately 4-6% at median for key revenue-generating functions from 2020 to 2021. 

Salary: On a “same store” basis, salaries for origination roles increased (~2-3%) at the median from Entry through Senior Expert levels. 

Differences by Level: Total comp increases increased notably (~5-10% increases) across all levels from the Entry through Expert levels at the median. Total comp increases were even higher at Senior and Managing Expert levels (over 10%).

Leadership: At the Executive level, cash bonuses for the 2021 performance year accounted for 40% of Executive compensation while long-term awards accounted for 24%. Total incentives, both cash bonus and long-term awards, as a percent of salary were 174% at the median.

For a complete copy of the 2022 Equipment Leasing and Finance Compensation Survey report, please visit https://bit.ly/2022ELFACompSurvey or contact Bill Choi at [email protected]. 

Note: Survey results are only available for purchase by firms who commit to participation in the 2023 survey. All participating firms are required to sign a non-disclosure agreement with McLagan for data privacy purposes.

Learn more about the Knowledge Hub, ELFA’s source for business intelligence on the equipment finance industry, at www.elfaonline.org/KnowledgeHub.