Higher of host or home reward system means?

• A. The assignee can only use host system
• B. The assignee must use home system
• C. The company selects the system for expatriates
• D. The assignee gets to choose which pay system will reward them best, the local system or the home country

Answer: (D)

The key idea here is that expatriate pay is designed to ensure the employee isn’t financially worse off by moving abroad. When you compare the two possible pay structures—the host-country system and the home-country system—the goal is to end up with the higher total reward. In practice, this often means the assignee can evaluate both options and take the one that yields the greater compensation, whether that comes from the local pay package or the home-country pay package. This protects the employee from pay loss and helps keep the assignment competitive compared with both labor markets.

The other options would constrain the employee to a single system, or place the decision entirely with the company, which would not reflect the idea of maximizing the reward by choosing the better of the two systems.