ELFA Reveals Compensation in Equipment Finance Industry Was Flat in 2020



Compensation in the equipment finance industry was relatively flat in 2020, according to the 2021 Equipment Leasing and Finance Compensation Survey from the Equipment Leasing and Finance Association. Although industry new business volume decreased in 2020 due to the COVID-19 pandemic — following 10 consecutive years of growth — compensation was stable in 2020 compared with 2019.

The 2021 Equipment Leasing and Finance Compensation Survey measured 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.

Survey Highlights

  • 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% to 2% at median for key revenue-generating functions from 2019 to 2020.
  • On a “same store” basis, salaries for origination roles were modest (~2%) at the median from entry through experienced levels.
  • Total compensation increases were flat (~1% to 2% increases) across all levels from the entry through managing expert levels at the median.
  • At the executive level, cash bonuses for the 2020 performance year accounted for 38% of executive compensation, while long-term awards accounted for 18%. Total incentives, both cash bonus and long-term awards, as a percent of salary were 125% at the median.


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Terry Mulreany
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