The purpose of this study is to examine the effect of interactions between expatriate's compensation package and compensation equity on compensation satisfaction and the manager's willingness to stay in a foreign location. Through a series of mail survey of 169 expatriate managers demonstrated that expatriates assigned to the different positions and areas had a significant difference in terms of their expatriate compensations, compensation equities and compensation satisfaction. Additionally, the results also revealed that expatriate compensations, perceived compensation equities had a positive effect on payroll satisfaction and expatriate willingness.
Finally, when the expatriate has higher perceived compensation equity, the MNCs should stress benefits system for the expatriation in order to create more payroll satisfaction. Similarly, MNCs should stress allowances and incentive bonuses for the expatriation to increase expatriate willingness.