ABSTRACT

Arguably, no aspect of international assigmnents gets more time, attention, and money

spent on it than the topic of compensation. Individual managers have a strong personal

interest in the topic as do companies-although the interests are not always 100%

aligned. Based on extensive discussions with executives around the world and several

surveys, we have identified three common and important objectives of international

assignment compensation systems:

1. Enhance the mobility of top talent. As we discussed earlier in this book, global

companies understand that company culture, know-how, market intelligence, and other

important intangibles require human, face-to-face interaction for maximum dissemination

and inculcation. Global firms need people to move around. At a minimum, compensation

systems should not inhibit mobility, and at a maximum, they should enhance it.