To celebrate the holiday season, members of the British American Business Council gathered at the Racquet Club of Philadelphia for an afternoon of business networking, celebratory “crackers,” holiday fare and great raffle prizes. At our 15th annual “Holiday Luncheon” on Friday, December 4, 2009 we were joined by British expat Jamie Pallot, editorial director of Condé Nast Digital. Among his other responsibilities, Pallot is in charge of the content and user experience of the company’s Web brands, including Style.com, Men.Style.com, Epicurious.com and Concierge.com. With pictures of himself and Anna Wintour, editor-in-chief of Vogue magazine, flashing across the screen, Jamie discussed how he got to where he is today, intermingled with appropriate jabs and jokes that made the Holiday Luncheon what it’s supposed to be: A break from “the grind” for an afternoon of laughs and celebration.
December, 2009
Post Archives
Happy Holidays from the British American Business Council
Wednesday, December 16th, 2009Join Us for the “Kick off of the Season”
Wednesday, December 16th, 2009On Wednesday, January 27, 2010 the British American Business Council will present “Major League Networking: A Union of International Business & Soccer” from 5 to 7 p.m. at The Pyramid Club of Philadelphia. To celebrate the Philadelphia Union’s addition to our professional sports community, the BABC has joined forces with other bilateral chambers in the region to organize a business networking reception with members of the international business community and the executive staff of the area’s newest Major League Soccer team.
For more information, please contact Jaime Scofield at 215-790-3627 or e-mail jscofield@greaterphilachamber.com.
Members: $40
Non-Members: $50
Sponsored By:
Presented By:
America-Israel Chamber of Commerce
British American Business Council
Chilean and American Chamber of Commerce
French-American Chamber of Commerce
German-American Chamber of Commerce
Italy-America Chamber of Commerce
Irish American Business Chamber & Network
Japan America Society of Greater Philadelphia
Expatriate Banking
Wednesday, December 16th, 2009HSBC Bank USA, N.A is part of one of the world’s largest and most trusted financial services organizations, the HSBC Group, which has a network of around 8,500 offices in 86 countries and territories. HSBC Group has global expertise in providing more than 100 million customers with the best financial solutions to meet their needs.
As part of our global suite of products, HSBC provides convenience for internationally mobile expatriates, giving them one central place to build up funds while their careers take them around the world. We provide specialist offshore banking solutions for customers in more than 200 countries and territories worldwide.
Many of HSBC’s customers in the U.S are expats, with business and personal interests in more than one country. Our services can help expats take advantage of the offshore savings, tax planning and wealth management opportunities available, and provide a secure home for their money.
Alan Smith, Head of International Wealth Management for HSBC Bank International shares his expert opinion:
‘Expats have not been immune to the global economic crisis, but despite this many expats are wealthier and save more than non-expats. As global economies continue to experience significant uncertainty, fascinating behavioral trends emerge among the expat population, particularly in the changes to their spending and investing habits.
What can you do to make your money work harder?
With interest rates at all-time lows in Europe and America, it is likely that we will see an effect on the popularity of fixed term investments, bonds, and property in these regions. As ‘green shoots’ of economic recovery gain credibility, we may find that expats are prepared to risk more for potential gains and may see an increased interest in the slightly riskier types of investments.
Get expert advice
Getting advice from an experienced advisor helps you understand the benefits of holding offshore investments, make the most of potential tax benefits and/or give you access to cross border investment markets.
Choose the right offshore centre
Choose the most relevant offshore centre to deposit savings so that in the event of death, beneficiaries can deal with probate in a language, culture and process that is most familiar.’
Learn more about HSBC Premier by calling:
William E. Block
Market Street Premier Relationship Manager
215-563-4131
Danny M. Chan
Arch Street Premier Relationship Manager
215-502-4159
Cross-border employee planning in an economic downturn: eight action items for consumer products companies
Wednesday, December 16th, 2009Written By: Cheryl Speilman and Gerald A. Tammaro, Ernst & Young LLP
Original Publisher: Workspan
Many international consumer products companies consider a global assignment a “must” for their key future business leaders. However, cross-border assignments often require a hefty investment.
As a rule, companies expect the cost of these activities to total three times the employee’s base salary; this figure encompasses cost-of-living differentials, housing, dependent education, tax equalization, vendor support and other expatriate premiums and allowances. While many companies have developed short-term assignment and business travel policies to more efficiently fill their staffing needs, additional measures can be taken to generate an immediate impact in the reduction of these program costs. Here are eight action items that companies can look at to decrease their cross-border employee costs.
No. 1: “blow up” existing polices. In light of the staggering unemployment figures and the increased availability of talent in marketplace, many companies are reexamining their existing expatriate and relocation policies – some are starting over from scratch rather than merely adjusting existing policies. The downturn has created a radical shift in the balance of power between employers and employees. In the current economic environment, the employer has far more leverage. In situations where companies are unable to realize a cost reduction in expatriate assignments, these programs could be cancelled altogether. This would result of the repatriation of employees to their home country where there may not be any openings. When given the choice between a more modest relocation package versus unemployment, an employee may be more apt to choose relocation. There are always going to be exceptions, but these will be primarily in the cases dealing with key personnel or top talent. (See Examples)
No. 2: develop and improve short-term assignment and business travel policies. Since the turn of the century, more and more companies are devising and implementing short–term work arrangement programs. Many organizations have developed (or are in the process of developing) short-term, business traveler and commuter-type policies to support their business needs. Clearly defining business traveler and other short-term policies can offer a competitive advantage over those companies that do not, as doing so can result in tighter controls and more insight into business travel costs.
Organizations that implement these solutions now gain a clearer picture of business travel costs as well as the incremental costs of these short term compensation packages. Perhaps the greatest benefit still is the comfort of knowing solid controls are in place to address any immigration, tax and other legal challenges associated with unmonitored short-term business travel. These benefits come in the form of reduced risk exposure from an immigration and tax perspective, as well as financial benefits derived through proper allocation of corporate chargebacks.
No. 3: reduce and localize cross-border employees. One of the most powerful tools in HR’s tool box is the ability to transform an expatriate assignment compensation package to a local or “local plus” compensation package. A “local plus” compensation package refers to a situation where an employee becomes a local on the books of the host country company, but receives certain basic entitlements that are not provided to truly domestic individuals in that country. The entitlements will vary from company to company, as well as country to country.
From a regional perspective, “local plus” is used most widely in the South America and Asia-Pacific regions where competition for talent has historically been fierce, but the cost of traditional expatriate packages are not as easily accepted by local management, as compared to other regions of the world.
No. 4: implement flexible delivery approaches. Most companies believe savings can only be achieved by taking away benefits from employees. The late 1990s saw a trend of introducing more flexible compensation approaches to ease the administrative burden on companies with large expatriate populations. Transaction costs were reduced by delivering allowances in lump sums, rather than through regular payroll or relocation vendor payments. A trend toward a more aggressive approach to lump-sum allowances is now developing. Companies are taking more of an à la cart approach by establishing the level of compensation costs that they can reasonably bear and then providing the employee with the choice as to how to allocate that compensation. For example, some employers are allowing employees to forgo their home-leave allowance and put the extra money toward their housing costs. This allows each family or individual to determine what is important to them without feeling any significant decrease in benefits. (See Examples)
Another variant on the “choice” theme is to provide line managers with a range of benefit amounts. This gives the line managers more flexibility to pay more for those who perform at higher levels, or less for those who do not. Line managers who are allocated an expatriate allowance budget can use the funds for their expatriate team members as they see fit. However, adopting this approach requires a company to entrust the line manager with the responsibility to manage the budget and watch the bottom line. As such, a potential downside develops: two expatriates can be in the same location and receive different levels of benefit.
No. 5: institute effective assignment-cost projections. The professional services industry has long been focused on the cost of cross-border employees, since associated costs tend to be passed on to their clients. Consumer products companies do not necessarily have this concern; as a result, the industry has generally shown less cost sensitivity in this regard. Cost projections typically are formulated with a “quick and dirty” approach or outsourced to a third party altogether. However, very few organizations have formal processes necessary to reconcile the projected cost to actual and far fewer have the processes required to effectively measure their return on investment.
This situation is rapidly changing. Companies are now analyzing the up-front costs very carefully and invoking assistance of third-party vendors where they previously hadn’t. Business-case approval forms are now accompanied by detailed cost projections which result in a “go” or “no go” decision. HR mobility executives are working closer with their finance organizations to assist with assignment costs monitoring and management.
No. 6: improve vendor management. It is not “business as usual” out there today. Shrinking expatriate programs are reducing economies of scale, and in some cases, increasing support costs because contractual volumes cannot be met. HR mobility executives are taking a close look at their providers and trying to consolidate services, using fewer providers in an effort to keep their volume discounts.
No. 7: adjust housing policies. Housing is typically one of the priciest components of the overall assignment cost. Companies are making policy changes to reduce the level of housing benefits provided and restructure their approach to reduce housing costs. Some companies are making immediate changes and requiring their employees to find more inexpensive housing. In most cases, this is limited to employees who occupy a residence that is more expensive than the average standard of living for that location in the country.
In addition, many companies are reexamining the areas in which their expatriates live. The expatriate communities within a town center are no longer considered the norm to establish the baseline housing cost allowance. Many companies are looking at areas outside of town centers and requiring their employees to find suitable, yet less-expensive, housing in these areas. Although this may increase their commuting time, typically it is still comparable to the commuting time employees would experience in their home countries. For example, Hong Kong has suitable housing in the territories outside of the city, but still within 1-1.5 hours from the downtown area. These areas are much less expensive, yet still within a reasonable commuting distance. (See Examples)
No 8: revisit tax planning. Global individual tax rates have been trending downward over the past several years. Avoidance of risk in expatriate programs has been the name of the game for the past several years, as tax planning wasn’t a primary concern. However, several countries including the US and Ireland have announced increasing individual tax rates in their recent budget proposals. Revisiting classic income and social tax-planning approaches can provide a reduction to employer tax reimbursement costs. There are some huge social tax savings strategies by opting out of the home country coverage, but picking up voluntary coverage in the home country while paying for coverage in the less-expensive host country system.
Conclusion
By addressing these eight action items, consumer products companies will be able to realize a considerable cost savings, but cross-border employee programs reflect just one of a number of hidden costs that might remain overlooked. While benefits and employee headcount are often seen as the low-hanging fruit, it is important to thoroughly analyze all aspects of the HR organization and consider the least disruptive options first.
Cheryl Spielman is a partner in the Human Capital practice of Ernst & Young LLP; Gerald A. Tammaro is a senior manager in the Human Capital practice of Ernst & Young LLP. The opinions expressed are those of the authors and not those of Ernst & Young LLP.
Contents © WorldatWork 2009. WorldatWork members and educational institutions may print 1 to 24 copies of any WorldatWork-published article for personal, non-commercial,one-time use only. To order 25 or more print presentation-ready copies, or an electronic copy for distribution to colleagues, clients or customers, contact Gail Hallman, ghallman@tsp.sheridan.com at Sheridan Press, 717-632-3535, ext. 8175. To order full copies of WorldatWork publications, contact WorldatWork Customer Relationship Services, customerrelations@worldatwork.org, 877-951-9191.
British-American Business Council Conference 2010
Wednesday, December 16th, 200912-14 May 2010
Willis Group, The Willis Building
51 Lime Street
London EC3M 7DQ
The next annual British-American Business Council Conference (BABC) will take place next year from 12-14 May in central London. This will be the first time in four years that the conference will have been hosted in London and is expected to bring together members from its 20 chapters in the United States, who will be crossing the Atlantic for the conference, and 5 chapters from the UK.
The conference will take place in a politically important year in both the United Kingdom and the United States, with a general election in prospect in Britain in the first half of the year, and mid-term elections due in the United States in November. We will be living with the continuing consequences of the credit crisis, which will, undoubtedly, continue beyond next year and well into the new decade. The principal focus is to look ahead into this new decade and assess how the leading business sectors in both the UK and US will evolve, adapt, and contend with the challenges ahead. These challenges will be assessed and analysed in a series of presentations and panels led by key global business leaders and sector specialists who will consider the following sectors:
• Healthcare and life sciences;
• Media, Telecoms and the creative industries;
• Aviation, Defense and National Security;
• Energy and the Environment;
• Financial Services and Insurance.
In separate sessions, the topics of Law, Taxation, HR and Employment and how they will change in the new decade are set to be discussed.
The overall objective of the conference is to present a comprehensive assessment of how these principal business sectors, all of which are of critical importance to both the UK and US economies, will manage over the next five to ten years. Those attending the conference will gain a comprehensive view of the prospects for the key components of our economies across the board, and be able to put the challenges of their own businesses into the wider context, and better understand the environment in which they will be operating.
On the evening of the first day of the conference, 13th May, a Gala Dinner will be held at which members will be conferring the Annual BritishAmerican Business Channing Corporate Citizenship on David Brennan, CEO of AstraZeneca.
For further information, please contact Ricardo Maldonado at .
J-1 Visa Program
Wednesday, December 16th, 2009For the past 20 years, BABC’s J-1 visa program has enabled members to bring qualified employees — of any nationality, and from anywhere in the world – into the United States for up to 18 months to gain first-hand knowledge of US business practices and methodologies.
J-1 Visa Fast Facts
Purpose
Enables BABC member companies to bring qualified employees into the US in a quick, cost-effective, reliable and user-friendly way.
Qualities
• Cost-effective: $1,500
• Quick: can process completed applications within five business days
• Reliable: authorized by the US Department of State since 1986
• User-friendly: Program Administrator on-staff to assist
Benefits
• Improve communication between US and overseas offices
• Provide US work experience to employees working elsewhere
• Enhance employee recruitment/retention
• Facilitate limited-time intra-company transfers
Conditions
• Maximum period of 18 months
• Trainees must have non-US degree /professional certificate or five-years work experience outside the US
• Company must have existing business relationship with UK
Business sectors served
• Management, Business, Commerce & Finance
• Sciences, Engineering, Architecture, Mathematics, & Industrial Occupations
• Information Media & Communications
• Law
For more information, please contact Ricardo Maldonado at 215-790-3627 or Ricardo@greaterphilachamber.com.
Local Consulting Firm Has Global Reach
Wednesday, December 16th, 2009A local firm, Wheatley US Limited, will present a two-day class on “Construction Contract Management” In Doha, Qatar, on December 18th and 19th, 2009, for Cape PLC. Cape is a major UK-based contractor providing insulation, fire protection, abrasive blasting, refractory, coatings, cleaning and training services to major power, industrial, oil and gas, refinery and petrochemical customers around the world. The course will be presented in the offices of their Qatari subsidiary, Cape East Limited (W.L.L.), in Doha. An additional presentation of the course will be made in Kuala Lumpur, Malaysia in the spring.
Headquartered in the UK, Cape has 65 offices in 28 countries around the globe. Wheatley US Limited is a Philadelphia area construction consulting firm with offices in Bala Cynwyd, and Baghdad, Iraq. With its sister firm, Wheatley UK Limited, in London, England, The Wheatley Companies (sm) are joined with strategic partners worldwide in a network called Wheatley Global Partners (sm), providing consulting services to clients around the globe.
The course was authored – and is presented – jointly by William A. Wheatley, R.A., of Wheatley US Limited and Stephen Matthews, Esquire, of Baker Botts, a major US law firm with a significant presence in the Middle East and East Asia, and in partnership with Pinnacle Group International of Singapore. Messrs. Wheatley and Matthews taught the course recently on November 16 and 17, 2009, in Doha, and Mr. Wheatley presented it in Singapore on November 19 and 20, for groups of regional contractors and government contracting officers.
The opportunity to present the series of courses came about as a result of contacts made through Wheatley US Limited’s corporate membership in the World Trade Center of Greater Philadelphia and its International Design and Engineering Consortium (“IDEC”), and in the British-American Business Council. Wheatley US Limited is a corporate member of both organizations. Wheatley US Limited is an example of how a small, local firm can develop global reach for its services through membership in such organizations.
For additional information, contact:
William A. Wheatley, R.A.
Chairman and Chief Executive Officer
Wheatley US Limited
2 Bala Plaza, Suite 300
Bala Cynwyd, PA 19004-1501
U.S.A.
Telephone: +1 610 658 0579
Fax: +1 610 658 6318
e-Mail: w.wheatley@WheatleyUS.com
“Battery venture powers up Scots company”
Wednesday, December 16th, 2009Published by: The Herald Scotland on December 7, 2009
Written by: Mark Smith
Luichart Technology, a Glasgow-based engineering think-tank and producer of hi-tech prototypes, has struck a joint venture agreement with a contract manufacturer in Pennsylvania that is expected to generate millions of dollars in sales and will see the US firm set up a base in Scotland next year and create 20 jobs.
AmEcosse, the new joint venture between Luichart and the US’s Ashland Technologies, will initially develop and manufacture a revolutionary, new battery to store energy from wind farms and, in a separate enterprise it see long-established Scottish fence maker Lochrin Bain launch a unique, hi-tech security system into the lucrative US market.
Luichiart, which employs eight people and conducts its business unusually from the library of the Glasgow Art Club, has already developed products for Nasa, Boeing and two Formula 1 teams, as well as the energy, aerospace and defence industries from its Scottish headquarters for almost 10 years.
However, Calvin Tan, the company’s founder and chief executive, told The Herald that a key meeting earlier this year with Pennsylvania Congressman Tim Holden had brought about a step change in the company’s fortunes.
“I met with Tim Holden in March,” said Tan. “I meet with a lot of people in the US. About 95% of our business is there. While the idea for Luichart has always been to provide advanced, hi-tech, engineering solutions for the world through Scotland, the US is far more accepting of new ideas.
“After I met with the congressman, I thought I’d never hear from him again. But within four hours there was a phone call and he hooked us up with a contract manufacturing company in his district called Ashland Technologies, and we hit it off. “It was like walking into room and seeing a woman that you know one day will be your wife.”
Ash-Tec, whose range of products include astronaut training simulators, wind turbines and roller coaster cars, and Luichart, which Tan jokes is Gaelic for lateral thinking (in fact, the company is named after Loch Luichart), agreed they should join forces.
Under the AmEcosse joint venture, a range of new hi-tech products will be manufactured both in Scotland and Pennsylvania.
Tan said Ash-Tec was currently looking at potential sites in Cumbernauld and Glenrothes, where it is seeking to establish a small manufacturing base in the first quarter of 2010, within striking distance of the oil industry in Aberdeen.
Tan said: “We do bumble bee technology – in the sense that bumble bees technically shouldn’t be able to fly, but they do.
“We develop ideas to a certain level of technological readiness and then we find partners to take that idea and make it work in the market place. That is precisely what is behind AmEccose partnership.
“Ash-Tec’s facility in Hegins, Pennsylvania is a showcase of how a modern factory should be equipped and operated. Every employee’s opinion is included in the decision making processes. This is the model for the new facility in Scotland.”
One of the projects, backed by a $25m mix of US federal and state funding matched by private investment, involves applying cutting-edge flow battery technology to store up to 10 megawatts of power from windfarms.
Flow battery technology was first developed by Nasa in the1960s and 1970s with the aim of creating an efficient reversible energy storage system with variable capacity.
Tan said: “In essence, the battery is like any other, but without a fixed volume of chemical content to hold the charge.
“Imagine a car battery with no top or bottom. As you generate electricity, uncharged fluid, the electrolyte, is flowed over the electrodes, picking up the power.
“Flow battery technology lets you store this charged fluid until needed.”
However, materials technology in the past meant the full potential of flow batteries could not be realised. High cost, low power densities and a lack of need prevented adoption.
In recent years, interest has been renewed with the advent of windpower, global warming and high oil prices.
Tan said: “Most companies developing flow batteries have concentrated on the chemistry of the electrolyte fluid. The downside of this is electrodes, because they are expensive and prone to mechanical and chemical failure.
“We chose to address the electrode design using our knowledge and capabilities with materials. The result was a hybrid polymer electrode, capable of functioning in any chemistry and a wide envelope of environments.
“We have also addressed the overall design of flow batteries, including control systems and fabrication. It is in this latter area where Ash-Tec’s skill sets come particularly to bear.”
Tan said he expects the project to net more than £100m in sales as it is adapted for 21st century wind power requirements.
Meanwhile, Luichart is applying its expertise in materials to some of Lochrin-Bain’s fencing systems, allowing the Cumbernauld business to offer what Tan describes as a “total security solution” involving sensors and monitoring systems.
Lochrin-Bain will also introduce new ranges of its fencing systems through AmEcosse, allowing it push deeper into the US market.
Tan added: “This is just the beginning. The combined compatible skills of Ash-Tec and Luichart will enable AmEcosse to really make a difference on both side of the Atlantic.”
To view the Herald Scotland article, click here.
Letter from the Philadelphia Union
Wednesday, December 16th, 2009To All BABC Members:
Philadelphia Union, the 16th and most recent addition to Major League Soccer will be taking the field for the first time next Spring, and you still have an opportunity to get in line for season tickets today. The organization, lead by CEO and Operating Partner Nick Sakiewicz, President Tom Veit, and manager Peter Nowak, are looking to bring the most admired American soccer brand to the Philadelphia area.
Nick is a member partner of Keystone Sports & Entertainment and as CEO & Operating Partner overseas all operations of the company. Sakiewicz is a founding executive of Major League Soccer and has been in the league since its inception over thirteen years ago. As President, Tom Veit oversees all business matters relating to the club and stadium. Veit joined the Union from the University of South Florida, and has previously worked in the MLS with the Tampa Bay Mutiny.
Nowak serves as Team Manager and is responsible for all facets of the club’s training and on-field performance. Nowak is the only person in league history to win an MLS Cup as both a player and a manager. A captain of the Polish National team for three years, Nowak most recently served a dual role as Head Coach of the Under-23 U.S. Men’s National Team and Assistant to Bob Bradley with the full national team.
Season tickets start as low as $300 and range up to $1,100 for Club Seats, and offer a perfect opportunity for rewarding employees, or entertaining clients and prospects. The games will take place in a brand new, 18,500 seat, state of the art, soccer specific stadium just minutes off of I-95 in Chester, PA. Located on the river next to the Commodore Barry Bridge, the newest team in Philadelphia will provide a unique game day experience to the Philadelphia sports scene.
Multiple season ticket price levels have already sold out, so if you are interested in further information, or would like to put down your first payment for season tickets, please contact me at (610) 497-6303 or via email at mevans@philadelphiaunion.com today!
-Mark Evans
Ticket Sales Manager, Philadelphia Union