Pay increases slow in US equipment finance industry

For the fourth consecutive year, a year-over-year increase in new business volume contributed to increases in compensation, albeit at a slower rate than previous years, according to ELFA’s 2014 Equipment Leasing and Finance Compensation Survey. The research is based on a cross section of the equipment finance sector, including independent, bank and captive leasing and finance companies.

The results show that, based on answers from respondents who had participated in previous surveys, total compensation was flat (+/- 1%) for key originations functions from 2012 to 2013. Infrastructure roles received marginally larger increases, ranging from 3%–6%, while divisional management fared better than most. Greatest variability was seen in compensation for team leader / senior roles, which fluctuated between decreases of 20% or more, and increases of over 14%.

Salaries for origination and infrastructure roles ranged between 2% and 4%, with infrastructure posts towards the bottom of the scale. However over a quarter of incumbents in key origination positions did not receive a salary increase over the year.

Generally, banks awarded higher compensation compared to captive and independents, particularly for senior roles. Total compensation and salary compensation rates tended to be comparable (+/- 5%) at lower levels for infrastructure and origination roles.

ELFA’s research has shown new business volumes in the US equipment leasing and finance continued to grow in 2013, but at a slower level than the previous three years, while heightened competition for deals has put pressure on margins. The association says the compensation trends in the industry mirror this uneven growth, with pay packages linked to industry financial performance over the last year and since the recovery began.