Thread regarding Chevron Corp. layoffs

Expats — why do we need them any more?

How many super highly paid expats with their zillion allowances are out there? Each expat is at least a million dollars in cost. Eliminate 500 expats or move them back to their home base where possible. That is at least 500 million bucks. Could even be more. Will pay 25% of the next dividend obligation. That would be a good smart move for Chevron. Chevron’s financial health has been deteriorating ever since the 2015 oil crash . Looks like oil price is destined to the dog house for good now that the dems are coming back in power.
Its really time to get back to basics and develop local talent everywhere instead of bringing these expensive expats to pontificate their “been there, done that”. Chevron can’t afford them, not now not next year! Period!

Oil companies are going to go the way of dinosaurs, coal companies and mainframes unless they rethink their wasteful ways of doing business.

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| 4916 views | | 30 replies (last November 9, 2020) | Reply
Post ID: @OP+17H1bEV2

30 replies (most recent on top)

@7bqk+17H1bEV2
That is just circular logic. You are arguing that expats are ten times as productive as locals because they get paid ten times as much. Totally baseless.

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Post ID: @9tbn+17H1bEV2

If expats really weren’t needed, why would they hire them? I mean take for instance TCO. A psg 23 on local payroll pulls in just shy of $30K per year, no pension package, no bonus. A psg 23 on US payroll working in the USA makes around $165K (depending on CO) add in 8% 401K, CIP, pension , and we are close to $200K. Now take that same US expat working rotational in TCO with the 50% (tax equalized) premium, vacation buyout, etc.... you are easily grossing a package worth in $350K plus, add in the business class travel etc and you are at $400K that’s even before the employer pays other benefits and employer taxes.

So reducing 1 expat could potentially pay for around 12 locals.....

If all things were equal, no expat would stand a chance at a job. Sure there are high performing locals that can compete well with expat competency on a technical basis.... Sure there are hangers on who rotate to the same place for 10—20 years without doing much because they know how to play the politics. However, the simple math mentioned above reveals something in terms of productivity difference. On average the expat is able to drive behaviors that get stuff done better than the locals several times over. That’s why they are still needed.

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Post ID: @7bqk+17H1bEV2

If you love getting massages, you should get an expat assignment in Thailand. Been here for longer than 10 years and I don't plan on leaving ever. Cost of living is low, but you still get several thousand USDs a month in housing and goods and services allowances. Life is really good here.

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Post ID: @5hcc+17H1bEV2

@3yc

Well put. Exactly my experience with US expats.

There are of course honorable exceptions.

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Post ID: @4nqq+17H1bEV2

@4qff Exactly!

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Post ID: @4nct+17H1bEV2

Very few technical expats come back better or smarter than when they left. Management expats are just the global Chevron country club of rotating high premium assignments as they move up the good of’ boys (and gals) club in Chevron. Funny how you never hear of a Chevron expat being headhunted by another company...

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Post ID: @4qff+17H1bEV2

Hey @2ust, wake up. If you think all those rednecks aren’t amongst the Expat ranks guess again. I was 15 years on the Expat circuit w a US major then Noble. I worked with more unqualified country managers and toothless Expat drillers than I can count, and not only did they have plenty of McNuggets, but the stupid American Co’s spent enough money that they all had their own private oases built around them- many of them never really live in the country they’re in , they just bring America to their oasis, including paid tuition at the best private American Schools you could imagine, and plenty of McNuggets for the kiddies. No hardship folks, quite the opposite, just spoiled kids making 2x their domestic net. Our counterparts outside America don’t treat expats like that, they just get fair compensation and are told if they want a good career they have to s— it up overseas without being some castle-bound royalty. But most US Expats isolate themselves from the local communities and are quietly despised in private by the locals with which they don’t integrate in any meaningful way. Yet a few integrate with the local culture, learned to conduct business in the local language, and in my case even became a homeowner and resident of my host country, going on local payroll - thankfully no longer part of the US Expat system. I learned what it truly meant to be one of them rather than one of the isolated US elite, and this was my reward- less $$ but far greater happiness.

Sorry for pi$$ing off most of you Expats, but I have to call it as I saw it during the expat experience

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Post ID: @3yvc+17H1bEV2

Indonesia is the only country I know of that has the policy of 3 years max for an expat. That is a smart policy that does not allow these hangers on for life leach like expats. They also have an age limit of 55 though, which I do not like.

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Post ID: @3qoi+17H1bEV2

How many expat positions were closed in R3 and R4? I can think of several in my function.

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Post ID: @2jal+17H1bEV2

Could you imagine one of these backwood, redneck, militia buffoons taking an expat position? Lol, I think not. They might have a panic attack if there's no chicken nuggets on the menu.

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Post ID: @2ust+17H1bEV2

As a rotating expat I could never find a job that pays me so much to do so little. From
The business class flights to the 50% premium why would you want to do anything else?

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Post ID: @2ujq+17H1bEV2

love being an expat. very generous housing allowance, uplift for cost of living (very generous). cash payment equivalent for full economy airfares in cash for each family member to travel back home (paid as cash so use it for expensive holidays), free medical +++. I earn three times equivalent US payroll employee. What is not to like. All this to live in USA Love Chevron.

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Post ID: @2hod+17H1bEV2

What about rotators? They make really big bucks and only work half time. Salaries well into the 6 figures are not uncommon for a rotator. The company could get a local to do the same exact job for a fraction of the cost. Also, I think these Rotators fly first or business class so using the locals would cut travel costs. Dump rotators and expats and trim management to the bone, that’s what I say.

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Post ID: @1wip+17H1bEV2

The highly experienced ExPats are valued by the national workforce employees (typically very smart but less experienced professionals) in the host countries in which Chevron operates. Chevron is required by the host countries to mentor and develop the national employees.

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Post ID: @1wwy+17H1bEV2

The company doesnt pay for expats because it likes to waste money. Just because you do not understand the reason doesnt mean that a reason does not exist.

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Post ID: @1yjy+17H1bEV2

Sounds like a lot of noise from folks who have no idea what expats do for the company or what makes those assignments challenging. Pays well, but not all roses!

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Post ID: @1gwe+17H1bEV2

Once you are an expat, then you will understand!

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Post ID: @1dxu+17H1bEV2

@OP doesn’t understand how work gets done in SASBU.

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Post ID: @1dbt+17H1bEV2

Who would do all the work if you got rid of expats ?

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Post ID: @cco+17H1bEV2

@fki+17H1bEV2 Absolutely right. US payroll is no exception. They are the most expensive.

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Post ID: @aph+17H1bEV2

US payroll expats are actually cheaper than a few of the super local high payrolls (Brazil, Africa).

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Post ID: @cul+17H1bEV2

Well it is an American company, just saying.

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Post ID: @ucr+17H1bEV2

OP great idea let’s send all those American expats back to the US!!!!!!

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Post ID: @ken+17H1bEV2

Wrong, large number of jobs 25+ were not filled.

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Post ID: @dvf+17H1bEV2

This topic had been talked to death as recently as 2 months ago. Same troll with no real value to discuss now. All selections had concluded and very few Expat positions were available, expect almost zero expat roles in the coming years. This company will be 70% focused on US assets and the remaining location will be filled with local talent.

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Post ID: @ucx+17H1bEV2

These “expats” that you are referring to are US payroll

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Post ID: @fki+17H1bEV2

Expats are compensated by the joint venture entity that they work for. Chevron essentially acts like a contractor providing talent in the form of a seconded employee.

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Post ID: @okx+17H1bEV2

We need many more drones, who can hang onto buzz words and reiterate them enthusiastically! That is the only salvation for oil downturn.

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Post ID: @mna+17H1bEV2

Way too many in upper echelon. But c'mon they are pals of Nigel (who is an expat too) and not very many senior positions are available in Perth, BKK, or Brazil and who the heck will go in Africa? So have a heart. They are just waiting to get into unfilled positions.

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Post ID: @nmr+17H1bEV2

Are you or have you been an expat? Or are you bitter because you never got the opportunity to make some serious coin. I’ve never been an expat, but would jump at the opportunity, so I can’t hate on those who have.

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Post ID: @ues+17H1bEV2

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