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Developing a Relocation and Severance Package for all Employees in Brazil
After W-L, Inc. Mr. Gonzalez moved to PepsiCo in Rio de Janeiro Brazil. His first role was to lead the move of the Latin America HQ from Rio to South Florida. Mr. Gonzalez was in charge of taking care of every aspect of the move which included building policies to pay those moving and those staying. PepsiCo had a policy for traditional one-to-one moves but it did not have any policy for a massive move such as this. The 35 families in Rio were all paid as expatriates which meant they had free housing, free home leaves, Cost of Living Allowances, paid schooling, fully paid cars, travel in First Class everywhere, etc. As an American Company, PepsiCo did not pay expatriate benefits to executives in the US.
Mr. Gonzalez designed a policy where all 35 executives were offered a moving package to South Florida and those who did not want to move were offered a fair severance package. The policy was equitable and fair. However, the CFO of the Company who was American told Mr. Gonzalez that he would not support the Relocation Package because it was too expensive. The CFO believed that the executives should be happy with whatever they got to move to the US. Mr. Gonzalez knew that the proposed policy was not only fair but absolutely critical to protect the Company from the significant legal and reputation risk that comes with a move of this magnitude in this region of the world.
Mr. Gonzalez escalated to the President of Latin America and the CHRO of PepsiCo and got full approval for his policy. The move was seamlessly executed with no legal issues and no negative press. All 35 families were successfully relocated and those who chose to remain in Brazil received fair treatment. This established Mr. Gonzalez's reputation as someone who could handle complex international people moves at scale.
