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Jurgen Mehr, the European head of marketing for German software giant Typware, is irate about the salary demands of the American executive he wants to hire. Anne Prevost, the executive in question, is the marketing director at a U.S. software company that has been making forays into Typware's markets. She engineered a huge uptick in sales for her company, and now she is ready to jump ship--provided Typware makes her a good offer. She would be a brilliant catch. But the salary she wants is nearly as much as Mehr's. Since 1996, Typware has ventured aggressively into international markets. The consultants who helped negotiate compensation for overseas employees recommended variable standards depending on the employee's location. However, individual expatriate packages are becoming increasingly complicated. HBR senior editor Bronwyn Fryer explores the question of what kind of international compensation approach Typware should adopt. In R0311A and R0311Z, commentators George T. Milkovich, the Catherwood Professor at Cornell University; Jeffrey Alan Thinnes, the managing director of Manugistics Central Europe, a U.S. software subsidiary based in Germany; Joseph Yaffe, a partner with the global law firm Latham & Watkins; and Dietmar Kokott, the senior vice-president of global human resources, executive management, and development at BASF Group, offer expert advice on this fictional case study.

Jurgen Mehr, the European head of marketing for German software giant Typware, is irate about the salary demands of the American executive he wants to hire. Anne Prevost, the executive in question, is the marketing director at a U.S. software company that has been making forays into Typware's markets. She engineered a huge uptick in sales for her company, and now she is ready to jump ship--provided Typware makes her a good offer. She would be a brilliant catch. But the salary she wants is nearly as much as Mehr's. Since 1996, Typware has ventured aggressively into international markets. The consultants who helped negotiate compensation for overseas employees recommended variable standards depending on the employee's location. However, individual expatriate packages are becoming increasingly complicated. HBR senior editor Bronwyn Fryer explores the question of what kind of international compensation approach Typware should adopt. In R0311A and R0311Z, commentators George T. Milkovich, the Catherwood Professor at Cornell University; Jeffrey Alan Thinnes, the managing director of Manugistics Central Europe, a U.S. software subsidiary based in Germany; Joseph Yaffe, a partner with the global law firm Latham & Watkins; and Dietmar Kokott, the senior vice-president of global human resources, executive management, and development at BASF Group, offer expert advice on this fictional case study.