Compensation Discussion Survey Results

1
Compensation DiscussionSurvey Results Round
Table DiscussionUnited Equipment Leasing
Association
2
Respondents

• Total
• 304 Sent, 86 Received 28 Response
• Southern California Response Rate
• 76 Sent, 24 Received- 32 Response

3
Sales Compensation
4
Q. How would you consider your sales organization
model?
Total So Cal
Vendor Driven 40.7 25.0
Lessee Driven 23.3 33.3
Equal Combination of both 36.0 41.7
5
Q. Where are you located?
Location Total So Cal
Southern California 28.2 100
Northern Cal 8.2
Northwest 12.9
Mid-West 12.9
Southwest 12.9
Northeast 11.8
Southeast 12.9
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Q. How many sales people do you have?
Total So Cal
1-5 60.5 33.3
6-15 27.9 41.7
16-30 9.3 16.7
31 2.3 8.3
7
Q. How are your sales representatives paid?
Total So Cal
Base commission 25.6 41.7
Commission only 66.3 37.5
Salary only 1.2 0.0
Others 20.8

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Q. If you answered the previous questions with
Base Plus Commission, how much is the base?
Salary Total So Cal
Less than 20K 3.7 0.0
20,000-25,000 33.3 33.3
25,000- 30,000 22.2 26.7
30,000- 35,000 25.9 33.3
35,000 14.8 6.7
9
Q. What percentage of gross profit do you pay in
commission?
Commission Total So Cal
Less than 15 8.6 4.3
15-25 9.9 21.7
25-35 13.6 13.0
35-45 22.2 21.7
45-55 38.3 34.8
55-65 3.7 0.0
65-75 2.5 4.3
75 1.2 0.0
10
Q. Can your sales representatives share in future
residuals?
Total Southern Cal
Yes 46.9 78.3
No 53.1 21.7
11
Q. What is the MINIMUM annual Gross Margin
expected of a seasoned sales representative?
(gt2yrs)
Gross Margin Total So Cal
lt50K 6.2 4.3
50-100K 29.6 13.0
100-150K 27.2 39.1
150-200K 16.0 30.4
200-250K 6.2 4.3
250-300K 6.2 0.0
300-350K 2.5 4.3
350-400K 2.5 0.0
500K 3.7 4.3
12
Q. What is the AVERAGE annual Gross Margin
expected of a seasoned sales representative?
(gt2yrs)
Gross Margin Total So Cal
lt50K 3.8 4.3
50-75K 11.2 4.3
75-100K 11.2 8.7
100-125K 13.8 4.3
125-150K 6.2 0
13
Q. What is the AVERAGE annual Gross Margin
expected of a seasoned sales representative?
(gt2yrs)
Continued Total So Cal
150-175K 11.2 8.7
175-200K 8.8 21.7
200-225K 11.2 26.1
225-250K 7.5 13
250-275K 5.0 0.0
275-300K 1.2 4.3
300K 8.8 4.3
14
Q. Are your sales people compensated for their
expenses?
Total So Cal
Yes 51.2 56.5
No 48.8 43.5
15
Q. How long is it before a new sales person is
productive generating a consistent stream of
gross margin?
Total So Cal
0-4 Months 11.5 8.7
5-8 Months 44.9 52.2
9-12 Months 26.9 17.4
13-18 Months 12.8 21.7
19-24 Months 3.8 0
16
Q. How long before they become profitable?
Months Total So Cal
0-4 Months 5.3 9.1
5-8 Months 30.7 22.7
9-12 Months 41.3 36.4
13-18 Months 13.3 27.3
19-24 Months 6.7 0
24-36 Months 2.7 4.5
17
Q. What is your retention rate of new sales hires?
Retention Rate Total So Cal
lt15 14.3 8.7
15-25 11.7 13.0
25-35 9.1 4.3
35-45 11.7 26.1
45-55 14.3 4.3
55-65 10.4 8.7
65-75 10.4 8.7
gt75 18.2 26.1
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Operational Compensation
19
Q. If you have an Operational/Office Manager,
what do you pay them?
Salary Total So Cal
lt30K 3 0
30-35K 13.4 14.3
35-40K 10.4 19
40-45K 9 14.3
45-50K 7.5 9.5
50-55K 6 0
60-65K 4.5 4.8
70-75K 3 4.8
gt75K 6 28.6
20
Q. How many people do they oversee?
of People Total So Cal
3 or less 56.9 44.4
4-6 29.4 44.4
7-10 3.9 0.0
10-12 5.9 0
gt13 3.9 11.1
21
Q. If you have a Credit Manager, what do you pay
them?
Salary Total So Cal
lt30K 1.6 0
30-35K 6.6 9.5
35-40K 8.2 9.5
40-45K 4.9 4.8
45-50K 4.9 9.5
50-55K 4.9 4.8
55-70K 4.9 9.5
70-75K 3.3 9.5
gt75K 6.6 4.5
22
Q. How many people do they oversee?
of People Total So Cal
3 or less 65.6 71.4
4-6 28.1 28.6
7-10 0 0
10-12 6.2 0
gt13 0 0
23
Q. If you have a Funding Manager, what do you pay
them?
Salary Total So Cal
lt30K 5.2 5.3
30-35K 1.7 0
35-40K 3.4 5.3
40-45K 10.3 10.5
45-50K 3.4 10.5
50-55K 6.9 10.5
65-70K 1.7 5.3
gt75K 0 0
24
Q. How many people do they oversee?
of People Total So Cal
3 or less 83.3 83.3
4-6 8.3 10.7
7-10 0 0
10-12 8.3 0
gt13 0 0
25
Q. What salary does your Credit Analyst get paid?
Salary Total So Cal
lt30K 12.9 0
30-35K 29 28.6
35-40K 3.2
40-45K 16.1 14.3
45-50K 9.7 7.1
50-55K 3.2 14.3
55-60K 9.7
65-75K 6.4 7.1
gt75K 9.7 14.3
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Q. What salary does your Funding Analyst get paid?
Salary Total So Cal
lt30K 19.2 9.1
30-32K 11.5 9.1
32-34K 11.5 9.1
34-36K 11.5 18.2
36-38K 7.7 9.1
38-40K 3.8 0
40-42K 7.7 9.1
42-44K 19.2 27.3
gt44K 7.7 9.1
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Q. Do you share company profits with your
operational staff?
Total So Cal
Yes 38.2 27.3
No 61.8 72.7
28
Q. Are your operational staff eligible for
bonuses?
Total So Cal
Yes 76.5 81.8
No 23.5 18.2
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Discussion