Flexibility, sensitivity, and the ability to listen and learn from locals are critical to the success of an executive abroad. The challenges of managing in an international environment are often compensated by salaries and perquisites that far exceed those which the manager might receive by remaining in the home country. Enlightened companies also realize that the benefits of international experience, such as the development of communications skills and understanding of corporate global operations, can be harvested only when a repatriation system is in place to provide an avenue for managers to reenter the company and to continue to make progress with their careers. This survey compared the compensation packages for executives in Frankfurt, Tokyo, and New York. While the survey found that in general there is relatively little difference between American managers and their peers in other countries, there is a difference in the nonsalary components of the compensation package.
Perquisites vary from country to country.
In Germany, car expenses are reimbursed and an annual physical exam is paid for. In Japan, perks include a company car and expenses, a private club membership, entertainment allowance, housing loans, and a business gift allowance. In the United States, there are none of these perquisites. The figures above are for executives other than the CEO, and the relative parity of the cash portion of the packages may be a surprise because of the publicity American CEOs have received for their compensation. Part of the explanation for the difference in the makeup of the compensation package is cultural.