Multinationals spend 30,000 euros monthly on expat execs, half of which on salaryPublish date: 05-08-2008
The net salary accounts for just half of an expat's costs in Romania. A multinational spends around 30,000 euros a month on an expat who holds a CEO or a general manager position, i.e. 360,000 euros a year, with the net salary making up only half this sum.
The biggest differences between foreign executives and Romanian ones are not salary-related, although the base salary is around 20-30% higher for expats (i.e. 15,000 euros in net sum for a foreign CEO of a large multinational). The major differences lie in the structure of the salary package, which is much more complex in the case of a foreign manager.
Housing-related costs and expenses incurred by the manager's family are the second major component of an expat's salary package. "Children's schooling taxes can reach up to 20,000 euros a year, while rent for an apartment can amount to 6,000-7,000 euros a year. Also included are the salary, 20% higher than a Romanian manager's, regular visits to the country of origin and medical insurance in private clinics," says Michael Weiss, principal of A.T. Kearney consulting firm, who oversees the company's activity in Romania.
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