Equipment finance pay on the up

Compensation in the equipment finance industry increased modestly in 2014, according to the 2015 Equipment Leasing and Finance Compensation Survey from the Equipment Leasing and Finance Association (ELFA) and McLagan, a performance/reward consulting and benchmarking firm for the financial services industry.

The survey’s findings indicate that steady increases in new business volume are pushing pay rates higher. It is based on data on compensation levels as reported by more than 70 equipment finance companies representing a cross section of the equipment finance sector, including independent, bank and captive leasing and finance companies.

Overall, the study shows that total compensation was up 3% for key origination functions from 2013 to 2014. Infrastructure (middle- and back-office staff directly supporting the equipment leasing and finance sector) received comparable increases of around 2% on average, with the highest rises recorded in the direct origination function. However, the survey found salary budgets remained very tight across financial services, including the equipment leasing and finance sector.

Generally, banks awarded higher levels of compensation relative to captives and independents. At more junior levels in infrastructure and origination roles, however, total compensation and salary rates tended to be comparable.

The majority of firms in the study had long-term award programs such as stock offers and deferred cash in addition to annual cash incentives. On a firm-by-firm basis, around 70% of banks paid long-term incentives, significantly higher than some 60% of captives and about 30% of independent firms.