WASHINGTON, D.C. - Compensation in the equipment finance industry increased moderately in 2019, according to the 2020 Equipment Leasing and Finance Compensation Survey released today by the Equipment Leasing and Finance Association (ELFA), in partnership with McLagan. Industry new business volume totals exceeded prior year growth, contributing to a moderate rise in compensation.

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.

Highlights from the 2020 Equipment Leasing and Finance Compensation 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, both cash bonus and long-term awards, as a percent of salary was 224% at the median.

Learn More
For a complete copy of the 2020 Equipment Leasing and Finance Compensation Survey report, please contact Bill Choi at bchoi@elfaonline.org or 202-238-3413. Note: Survey results are only available for purchase by firms who commit to participation in the 2021 survey. All participating firms are be required to sign a non-disclosure agreement with Mclagan for data privacy purposes.

About ELFA
The Equipment Leasing and Finance Association (ELFA) is the trade association that represents companies in the nearly $1 trillion equipment finance sector, which includes financial services companies and manufacturers engaged in financing capital goods. ELFA members are the driving force behind the growth in the commercial equipment finance market and contribute to capital formation in the U.S. and abroad. Its 575 members include independent and captive leasing and finance companies, banks, financial services corporations, broker/packagers and investment banks, as well as manufacturers and service providers. For more information, please visit www.elfaonline.org.