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Paper Topic:

You are responsible for developing a compensation package for an expatriate aviation manager. Identify and discuss some of the factors that are important.

Developing a compensation package for an expatriate aviation manager is a significant aspect of setting up an aviation business abroad , and developing such a package for an expatriate aviation manager assumes more significance as the aviation company concerned should earn the loyalty of the expatriate aviation manager , and he should be adequately compensated to work in a foreign country . The compensation package should be transparent , and it should not make his financial position worse had he been retained in the home country

While deliberating and deciding such a compensation package , the

following aspects should be taken into consideration : -

The compensation package should take into account the tax advantage or disadvantage as the tax rates in the foreign country may be dramatically different from the parent country

Sometimes , companies are limiting the tenure of overseas posting with a view to avoid shifting of family abroad . Although this has its own advantages and disadvantages , the matter of living alone should be compensated by way of additional wages or perquisites like additional short trips home

In case , the expatriate aviation manager has to shift his family , the extra cost of schooling in the parent country by way of hostel and other expenses for the children should be taken care of . Expenses relating to shifting personal establishment should also be compensated

The cost of residential accommodation (rent and utilities ) should be taken into account while deciding the compensation package

Cost of living allowance (called by whatever name ) should form part of the compensation package to take care of reduction in purchasing power arising on account of inflation and fluctuations in the currency conversion rates

The foregoing discussion reveals that the compensation package should match favorably with his existing package in the home country , and it should also take into account the inconveniences of working abroad

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Expatriate Aviation Manager

Compensation Package


Tauber , Yale D , Levy Donald R , Executive compensation

Cost of Living Allowance . Retrieved 1st March , 2007 from HYPERLINK "http /www .air-inc .com /compensation /col .html http /www .air-inc .com /compensation /col .html

Rent and Utilities . Retrieved 1st March , 2007 from HYPERLINK "http /www .air-inc .com /compensation /rent .html http /www .air-inc .com /compensation /rent .html rent and utilities

Rethinking international compensation . Retrieved 1st March , 2007 from HYPERLINK "http /instruct1 .cit .cornell .edu /courses /ilrhr769 /97_24 .pdf http /instruct1 .cit .cornell .edu /courses /ilrhr769 /97_24 .pdf...

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