US Relocation Benchmark
📖

US Relocation Benchmark

Type
📖 How-to Content
Category
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

Sources

→ Call with Yoann Brugière, cofounder of Orbiss, specialist in fiscal regimes → Call with Caroline Scemama-Zeitoun, founder of Expat US, specialist in startup relocations → XAnge internal research, IRS Tax Estimation Tools, etc.