DISQUS

John Windsor · 2 years ago

Good post, Frank. I faced a similar situation before signing on for a stint in London several years ago. What saved me was getting the company's agreement to a fixed amount in Sterling that I would receive, after taxes.

capybear · 2 years ago

I wonder if this is why more Americans are actually formally emigrating to Eurozone countries, becoming citizens there (as opposed to doing temporary expat assignments). France, Holland/Belgium, Germany and Austria seem to be draws especially, UK not so much-- but maybe relocating to these places helps to provide a hedge to demand a salary paid in Euros. Probably language-learning is only real hassle, and seems like most folks I know absorb their French or German or whatever w/o too much trouble when they get set up and there.

I dunno, but I have to think I'd be on the brink of rioting if I was basically living in a European country while being paid in an increasingly worthless currency somewhere else. Also a particularly moronic move for any country that pulls something like that-- basically a formula to drive your best talent away to your competitors.

capybear · 2 years ago

"Also a particularly moronic move for any country that pulls something like that"
Read: "Also a particularly moronic move for any *company* that pulls something like that"

Frank Roche · 2 years ago

Capybear, it's amazing that companies still think that way. It's not that hard to figure out how to do it right.

From what John says, there is a way -- agree to a fixed amount in local currency after taxes. I do know that the acounting firm I talked to about this told me that it was unusual for a company to not give some kind of protection...but it's one of those easy things to overlook until it's too late.

Jack Keogh · 2 years ago

I've been involved in the relocation business in the United States for many years. My experience suggests that the big companies make sure that their expatriates remain "whole" - they don't want them to gain, or lose, from the compensation perspective. There is strong infrastructure to help keep companies fair and up-to-date in their practices. They know that expatriates share their salary stories! Maybe your experience relates to a company that doesn't really value the expatriate experience and the role that expatriates could - and should - play in their global strategy?

Frank Roche · 2 years ago

Jack, I had that sense that most companies do it right. The really funny part was that I was working for a firm that consulted on that very topic. The accounting firm I was dealing with told me I was one of the cobbler's children. Glad to hear it works right...in my circumstance I still am happy that I didn't take that job..I would be broke now.

Jack Keogh · 2 years ago

The "cobbler's children" is probably a great topic for a blog! I too worked for a (very) big relocation company... I can relate to your experience! In the past, expatriates made a lot of money- that is changing fast. The growing phenomenon is "localization" and increasing difficulty in getting people to accept assignments.

headache people · 2 years ago

Please give me some advise. I am working in Japan. I did fixed my salary at the rate of 1USD=112yen in 2006. I knew that was NOT a very ideal rate, but for less risk on my side, i did take the offer. However, the dollar gained quite a bit against the yen in 2007, the average rate is 1USD=117yen. Then i started to feel bitter about my decision.

I will extend another year contract. Should i change my contract condition from fixed X-rate to monthly market rate?