Fleet Managers’ Salaries Are Rising

Increased compensation for commercial fleet mangers is based in part on whether a company owns or leases its fleet, and signals a growing awareness of the position’s importance in the eyes of management.

by AF Staff

September 1, 1990

4 min to read

The money you make as a fleet manager may have something to do with whether your company owns its fleet or lease it.

Although the average salaries of the two groups are comparable ($39,450 for mangers of company-owned fleets and $39,370 for managers of leased fleets), managers of company-owned fleets may have a better chance of breaking into the $40,000 salary range, according to a Runzheimer International study.

According to the study, 43 percent of fleet managers whose companies own their fleets have surpassed the $40,000 salary barrier. This compares with the 38 percent of leased-fleet managers who are over that same $40,000 salary mark.

SALARIES FOR FLEET MANAGERS OF COMPANY OWNED FLEETS:

Average Salary in 1989: $39,450

Median Salary in 1989: $37,770

	1983	1985	1987	1989
Under $20,000	14%	14%	6%	3%
$20,000-24,999	12%	14%	15%	12%
$25,000-29,999	22%	8%	13%	9%
$30,000-34,999	18%	14%	16%	20%
$35,000-39,999	14%	15%	14%	13%
$40,000-44,999	20%	35%	10%	14%
$45,000-49,999	N/A	N/A	10%	12%
$50,000 or more	N/A	N/A	16%	17%
N/A=Not Asked

SALARIES FOR FLEET MANAGERS OF COMPANY LEASED FLEETS:

Average salary in 1989: $39,370

Median Salary in 1989: $357110

	1983	1985	1987	1989
Under $20,000	10%	11%	11%	5%
$20,000-24,999	16%	16%	14%	13%
$25,000-29,999	17%	11%	17%	18%
$30,000-34,999	19%	16%	16%	14%
$35,000-39,999	10%	21%	12%	12%
$40,000-44,999	28%*	25%*	12%	9%
$45,000-49,999	N/A	N/A	2%	9%
$50,000-54,999	N/A	N/A	16%**	7%
55,000 or More	N/A	N/A	N/A	13%
N/A=Not Asked
*Salary range represented by these percentages was $40,000 or more.
**Salary range represented by this percentage was 50,000 or more.

In comparisons to salary figures from the last seven years, however, it is clear that both groups of fleet managers are beginning to climb the salary ladder.

In 1983, only one out of five managers of totally company-owned fleets earned $40,000 or more per year. In 1985 and 1987, just over one-third received salaries above that amount. The jump to 43 percent in 1989 is a nearly 20 percent increase to the over$40,000 group from 1987's figures.

The salary history for leased-fleet managers has shown a similar movement. In 1983 and 1985, only about one-fourth of leased-fleet managers received salaries at $40,000 or above. In 1987, just under one-third received salaries at or above that amount. The 1989 figures, however, show that the percentage of leased-fleet mangers who have reached the $40,000 salary range has grown to 38 percent.

What does all this mean? It means that companies are, in fact. Beginning to recognize the need for a fleet professional to oversee vehicle operations, and also that they are becoming increasingly open to the idea of adequately compensating fleet mangers for a professional job well done.

SALARY RANGES OF MANAGERS IN CHARGE OF GOVERNMENT AND UTILITY FLEET OPERATIONS
	Government	Utility
Average 1989 Salary	$39,300	$46,400
Median 1989 Salary	$38,600	$46,600

	1983	1985	1987	1989
GOVERNMENT OPERATIONS
Under $20,000	7%	5%	8%	3%
$20,000-24,999	14%	14%	10%	4%
$25,000-29,999	17%	20%	11%	9%
$30,000-34,999	34%	23%	22%	23%
$35,000-39,999	19%	20%	21%	16%
$40,000-44,999	9%*	18%	14%	18%
$45,000-49,999	*	*	14%	14%
$50,000-59,999	*	*	**	7%
55,000 or More	*	*	**	6%

UTILITY FLEETS	1983	1985	1987	1989
Under $20,000	N/A	N/A	2%	1%
$20,000-24,999	N/A	N/A	3%	1%
$25,000-29,999	N/A	N/A	7%	6%
$30,000-34,999	N/A	N/A	13%	9%
$35,000-39,999	N/A	N/A	18%	12%
$40,000-44,999	N/A	N/A	14%	16%
$45,000-49,999	N/A	N/A	43%**	14%
$50,000-54,999	N/A	N/A	**	15%
55,000 or More	N/A	N/A	**	26%

This category was $40,000 or more in the 1983 and 1985 surveys. *This category was $45,000 or more in the 1987 survey.
N/A=Not Asked

Selected California Cities and Counties-June 1990:
	Base /Top Salary Step	Fleet Size
County of San Diego	$6,000	1,900
City of Oakland	$5,701	1,801
City of San Jose	$5,327	1,560
City of Sunnyvale	$5,266	600
County of San Bernardion	$4,850	1,350
City of San Mateo	$4,787	250
City of Milpitas	$4,699	180
City of Santa Clara	$4,686	890
County of Alameda Transportation	$4,673	475
County of Riverside	$4,625	1,600
City of Fremont	$4,539	325
City of Redwood City	$4,495	402
City of Palo Alto	$4,482	470
County of Sonoma	$4,337	1,100
County of San Diego Transportation	$4,331	525
County of Santa Clara	$4,298	1,320
County of Contra Costa	$4,140	1,150
County of San Mateo Transportation	$3,910	400
County of San Mateo	$3,753	480

Note: Most all cities and countries have paid retirement or no social security andlor both which is not included in the survey. This informal survey was conducted by R. Simon. County of Santa Clara, and is published courtesy of California Fleet News.