Compensation in the equipment finance industry was relatively flat in 2020, according to the 2021 Equipment Leasing and Finance Compensation Survey released by the Equipment Leasing and Finance Association (ELFA). Although industry new business volume decreased in 2020 due to the COVID pandemic—following 10 consecutive years of growth—compensation was stable in 2020 from the previous year.

The 2021 Equipment Leasing and Finance Compensation Survey measures compensation rates for the 2020 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 90 executive, front-office and support positions and 10 levels of seniority, including a breakdown of salary (for 2020 and 2021), 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 2021 Equipment Leasing and Finance Compensation Survey include:

• Total Compensation: Total compensation was flat 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 1-2 percent at median for key revenue-generating functions from 2019 to 2020.
• Salary: On a “same store” basis, salaries for origination roles were modest (~2 percent) at the median from Entry through Experienced levels.
• Differences by Level: Total comp increases were flat (~1-2 percent increases) across all levels from the Entry through Managing Expert levels at the median.
• Leadership: At the Executive level, cash bonuses for the 2020 performance year accounted for 38 percent of Executive compensation while long-term awards accounted for 18 percent. Total incentives, both cash bonus and long-term awards, as a percent of salary were 125 percent at the median.

Learn More
For a complete copy of the 2021 Equipment Leasing and Finance Compensation Survey report, please visit https://bit.ly/2021ELFAComp or contact Bill Choi at bchoi@elfaonline.org. Note: Survey results are only available for purchase by firms that commit to participation in the 2022 survey. All participating firms are required to sign a non-disclosure agreement with McLagan for data privacy purposes.