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Expatriate Compensation

Balance sheet compensation plan:  aims to develop a salary structure that equalizes purchasing power across countries

Common methods of implementing a balance sheet compensation plan include:

the home-based method

[preserves equity with home-country colleagues]

the headquarters-based method

[preserves equity with headquarters colleagues]

the host-based method

[reflects prevailing costs and salary scales in the host country]

Compensation must neither overly reward nor unduly punish a person for accepting a foreign assignment.

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