Type
📖 How-to Content
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Admin
The following is intended to assist in contextualizing discussions around CxO compensation packages for executives relocating to the United States.
This benchmark took the example of the city of Boston as an example. Costs of living and compensation may vary widely according to location (New York will be +50% or more higher, while other smaller cities could be considerably less).
🚨 A Few Things To Keep In Mind
- Living Costs (excluding Rent) in Boston trend 40% higher than Paris
- Rent is 90-100%+ more expensive than Paris
Relocation and Living Cost Estimates
Relocation Package
Assumptions : 1 CXO and Family (2 Parents + 2 Kids), 3 Bedroom Apartment/House, 30 Day Temporary Accommodation, O1 or E2 Work Visa + 3 Dependents, Living in Paris + Relocating to Boston
Support Type | Amount $ | Service Provider/Coordinator | Paid by Employer? |
Relocation Coordination / Destination Services ( helping arranging bank accounts, house hunting, social security enrollment, other miscellaneous admin tasks). | 4-6k | Relocation Consultancy | Always |
Visa Fees + Immigration Consultant (including fees for dependents) | 3-8k | Specialized Legal Firm | Always |
Temporary Accommodation On Arrival | 8-10k
| Relocation Consultancy | Always |
Travel Costs | 3k | Travel Agent/Employee Themselves | Always |
Moving Costs | 3-8k | Moving Company | Usually |
Allowance for Miscellaneous Expenses | 2-5k | Employee Themselves | Usually |
Real Estate Broker Fees (usually 10-15% annual rent) | 8-10k | Real Estate Agent/Relocation Consultancy | Usually |
TOTAL | 31k - 50k |
Yearly Living Costs
Assumptions: 3 Bedroom House/Apartment, Employer Does Not Provide Health Insurance, Car + Public Transport, Restaurant 10% of Meals, 2 Parents + 2 Young Children
Living Expenses | Amount $/y |
3 Bedroom Rental Property in Greater Boston Area (1000+ sq ft) | 55-65k |
Utilities (electricity, heat, gas, telephone, internet) | 4-7k |
Health Insurance (Family of 4) | 18-22k |
Transport (Public + Car + Parking) | 6-8k |
Childcare | 10-14k |
Food at Home | 15-20k |
Restaurants | 5-7k |
Entertainment / Going Out | 2-3k |
Leisure and Sport Memberships | 2k |
Bilingual International School Tuition 2 Children Younger than 16 | 60-70k |
Retirement Fund (401k) Contributions | 10-15k |
TOTAL | 187k-223k |
Private School Fees are potentially the single biggest expense. Often chosen by expats for ensuring multi-lingual environment for their children
Some companies choose to include these fees in the compensation package.
Post Tax Income Estimates
Personal Income tax in the United States is a combination of Federal and State taxes. Federal Taxes are calculated based upon seven tax rates (brackets) that range from 10% to 37%. Added to this is State Income Tax. State taxes vary wildly from state to state. It can range from 0% (Texas) to 10% (New York) and is often also ‘bracketed’ like Federal Taxes.
Assumptions: Married with 2 Children, Lives In Boston Massachusetts, Spouse Does Not Work
Gross Pre-Tax Income | Estimated Tax | Net Take Home Income |
$400,000 | 30% | 280k |
$350,000 | 25% | 260k |
$300,000 | 24% | 228k |
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