Executive relocation guidelines

One guideline to work with is to make the new hire financially “whole.”

• Customary & reasonable costs in selling home:
  • broker’s commission up to 6%
  • attorney’s fees
  • documentation costs
  • transfer taxes paid by seller
• 6-12 months’ temp. living costs not exceeding candidate’s previous cost of living
  • rent
  • utilities
  • insurance
  • lawn or other upkeep for present house
• 2-3 house hunting trips, with accommodations, for candidate & significant other

It is reasonable to expect a minimum tenure in return for a relocation package. This can range from 6-18 months. Portions, or all, of the package can be subject to return during cut-off points within that tenure.

• All moving expenses for goods, vehicles (including boat), pets, etc.
• Incidental costs of moving, such as phone installation, auto registration, etc.
• Up to 2 points on the purchase of a new home commensurate with old one
• Non-recurring closing costs (legal fee, title search, etc.)
• Since relocation money is considered income by the federal government, a tax “gross-up” fee of 39% of the total keeps a candidate financially “whole”
• Sometimes this package is on “pay as you go” basis, sometimes it’s a lump sum