ImTheCaptain
I disagree with you
OK, I need a little help considering a decision related to our upcoming relocation to the UK in 2024. Backstory: my wife was offered a temporary position as Director of Dickinson College's study abroad program in the UK. We'll be relocating there as a family summer 2024-2026.
Below is the section related to her compensation as "Director" while abroad for two years. This is their standard policy for all their abroad programs, not specific to the UK.
As is, my wife's salary is largely used as savings/college funds and pays for our younger daughter's daycare (and will likely continue to fund semi-private schooling in the UK, if we can get in). Given the timeline (24 months) I'm not sure stabilization is really necessary given the dollar's strength has risen (historically) and seems flat over the past 5 years, relatively?
Am I missing something?
Below is the section related to her compensation as "Director" while abroad for two years. This is their standard policy for all their abroad programs, not specific to the UK.
As is, my wife's salary is largely used as savings/college funds and pays for our younger daughter's daycare (and will likely continue to fund semi-private schooling in the UK, if we can get in). Given the timeline (24 months) I'm not sure stabilization is really necessary given the dollar's strength has risen (historically) and seems flat over the past 5 years, relatively?
Am I missing something?
Salary Stabilization
The director’s salary is paid in dollars, twice monthly, in Carlisle. The College offers directors a choice between two options concerning exchange rates:
1. The director may simply take his/her chances in exchanging salary dollars for pounds or Euros, benefiting or not from fluctuations in rates; or
2. The director may choose to participate in the optional salary stabilization protection plan.
Under this plan, the director may choose any portion of his/her salary, from 0% to 100% (in wholepercentage points), to be protected against fluctuation in exchange rates. If the US dollar weakens against thedirector’s salary exchange rate for the program (to be communicated to directors by Global Accounting on July 1), the College will provide additional dollar salary for the amount protected; similarly, if the US dollar strengthens, the College will reduce the director’s salary accordingly. This is a guarantee of the director’s salary’s buying power and is more or less equivalent to paying salary in pounds or Euros (as applicable) rather than in dollars.
Calculations, based on the latest exchange rate, are performed by Financial Operations every month on the last working day of the month. Adjustments (if any) appear on the next paycheck and are communicated to directors in writing. Exchange rates used for the “director’s salary exchange rate” and for monthly calculations are the official published walk-in rates provided by the program’s on-site bank (or other major money-center bank in the host country). Directors are asked to let the Director of Global Accounting know in writing on or before July 15 whether or not they wish to participate in this optional salary stabilization protection plan.
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