Executive Relocation Packages: Best Practices and Strategic Considerations

Tony Cinello | Founder and President | Anthony Andrew

June 16, 2025

Executive relocation packages are critical tools for attracting and retaining top leadership talent in a globalized and competitive labor market. As organizations expand across geographies and tap into global talent pools, the ability to offer compelling relocation support becomes not just a benefit—but a strategic imperative. This article explores the key components of executive relocation packages, legal and tax considerations, and emerging trends influencing how companies structure these benefits.

Components of Executive Relocation Packages

Relocation packages for executives are typically more generous and comprehensive than those offered to mid-level employees. They often include:

1. House-Hunting Trips: Companies may sponsor multiple trips for the executive and spouse to identify suitable housing in the new location.

2. Home Sale and Purchase Assistance: This can include reimbursement for real estate agent commissions, legal fees, and closing costs.

3. Temporary Housing: Short-term housing is often provided while the executive transitions.

4. Household Goods Moving Services: Includes professional packing, shipping, storage, and insurance.

5. Cost-of-Living Adjustments (COLA): Compensation to offset higher living expenses in the new location.

6. Tax Gross-Ups: To offset the tax burden associated with relocation benefits. 1

7. Family Support Services: School search assistance, spousal job search support, and cultural training, particularly in international relocations. 2

Legal and Tax Considerations

Executive relocation packages involve complex legal and tax implications. For U.S. tax purposes, the Tax Cuts and Jobs Act of 2017 eliminated the exclusion for employer-paid moving expenses, making them taxable income for the employee. 3 As a result, many companies provide tax gross-ups to maintain the net value of the benefit.

From a legal standpoint, relocation benefits may be governed by the terms of an executive employment agreement. In cross-border moves, companies must also consider:

• Immigration compliance (e.g., visas, work permits)

• Local labor laws (e.g., notice periods, severance entitlements)

• Permanent establishment risk if the executive’s activities trigger corporate presence in a new jurisdiction 4

Strategic and Cultural Considerations

A well-crafted relocation package signals an organization’s investment in its leadership. It must be:

• Tailored: Packages should reflect the executive’s seniority, family situation, and destination location.

• Flexible: Offering a menu of benefits can improve satisfaction and cost-efficiency.

• Competitive: Benchmarking against industry peers is essential to remain attractive.

Cultural sensitivity is also critical. In some regions, for example, providing comprehensive family support is standard practice, while in others, cash allowances are preferred. Poorly designed packages can lead to assignment failure, costing hundreds of thousands of dollars and eroding trust with senior hires. 5

Trends and Innovations

Several trends are shaping the evolution of executive relocation:

1. Digital Tools: Apps and platforms now streamline everything from move coordination to destination services.

2. Sustainability: Companies are increasingly conscious of the environmental impact of relocation and may offer green moving options.

3. DEI Integration: Ensuring that relocation benefits support diverse executives—e.g., same-sex partner support or accommodations for differently abled family members—is a growing priority.

4. Policy Harmonization: Global mobility teams are working to standardize policies across regions while maintaining local relevance.

Conclusion

Executive relocation packages are more than logistical checklists—they are strategic instruments that influence leadership mobility, employer branding, and talent retention. As mobility becomes more complex and personalized, companies must balance cost, compliance, and candidate experience. A well-designed relocation program reflects not just operational efficiency, but a company's values and leadership priorities.

Footnotes

1. KPMG. 2023 Global Assignment Policies and Practices Survey.

2. Mercer. (2022). Global Mobility Trends Survey.

3. Internal Revenue Service (IRS). (2018). Tax Cuts and Jobs Act: A Comparison for Businesses.

4. EY. (2021). Managing Permanent Establishment Risk in Global Mobility.

5. Brookfield Global Relocation Services. 2021 Global Mobility Trends Survey.