Carta HRIS Integrations now available to Carta admins

Carta integrations to HRIS (Human Resources Information System) Providers are now available to all users with HR Administrator or above Carta access. The HRIS Integrations we have today are one-way data synchs from either BambooHR, Namely, or Workday into Carta.

Who this affects:

HR Admins, Company Editors, and Legal Admins for all companies

What’s New:

Carta HRIS integrations are now available to users with HR Administrator, Company Editor, and Legal Administrator access. Carta HRIS integrations can:

  • Flag Terminated Employees. Employee terminations made in the HRIS appear as pending termination events in Carta
  • Flag Existing Stakeholder Updates. Employee profile updates made in the HRIS will appear as pending stakeholder profile updates in Carta

Carta HRIS integrations functionality can be enabled via the Company > Settings > Integrations page. The data pulled by the HRIS integrations is then shown in the Stakeholders > Stakeholder Updates page where, you can find:

1. Pending HRIS employee profile updates for stakeholder profiles that already exist in Carta



2. Pending terminations for employees who were terminated in the HRIS but not in Carta



Learn more about setting up each HRIS integration here:

Lastly, for Enterprise companies, Carta also supports flat file integrations with HRIS Providers that support automatic report uploads via SFTP. Contact your Carta Account Manager if you want access to the flat file integrations feature.

International exercising - submit and settle your exercise with Carta

Non-US optionholders at US private companies will now be able to initiate and pay for option exercises through Carta.

Who this affects:

  • 🌐 Non-US optionholders at US private companies that have enabled this feature

Supported platforms:


What's new: 

  • Submit exercises on Carta - When enabled by your company, option exercises can be initiated within Carta.
  • Submit payment to Carta - After admin approval, pay for your exercise with a wire transfer to Carta. Once Carta receives the full cost of the exercise, funds are transferred to the issuing company.

  • Exercise and payment status - Track exercise and payment status within Carta. Be notified of any issues with your payment.
  • Immediate certificate generation - After receiving the funds for your exercise, a stock certificate is immediately generated for company officers to sign.

Timing:

  • All US private companies will be fully transitioned to support Non-US exercising by March 2021.

Resources:

 

 

Option exercise settings for exercises initiated and settled on Carta

Managing option exercising is now easier than ever. 

All exercises are now settled through Carta—US optionholders pay via ACH, Non-US optionholders pay via a wire transfer. Carta conveniently manages payment reconciliation and payment issues such as insufficient funds or overpayments. US private companies can centrally adjust exercising via the Transaction Settings page. 

Who this affects:

  • 🇺🇸  US private companies 

What's new:

  • 💸 All exercises are settled with Carta - No matter where your optionholders are located, Carta will receive all funding for on-platform exercises. US holders pay for their exercise via ACH and non-US holders pay for their exercise via a wire transfer to Carta. Company admins will no longer need to mark exercises as paid. 
  • ✉️Communication with optionholders - Carta communicates directly with optionholders to resolve payment issues, letting them know of an outstanding balance for an exercise or facilitating a refund for overpayment. 
  •  Auto-cancel unpaid exercises - If a wire exercise is unfunded or underfunded for 30 days after admin approval, the exercise will automatically be canceled. 
  • ⚙️ Clear transaction settings - Control option grant exercisability easily in one central location

Timing:

  • To be rolled out to all customers by the end of February 2021

Action required: 

  • Visit Company > Settings > Transaction Settings to opt in
  • Once your company has access to this feature, you must opt in within 30 days otherwise online exercising will be disabled
  • If you do not yet have access, reach out to your Customer Support Manager to get immediate access

Resources: 

Limited Partner Onboarding flow

Limited partners now confirm that their information is accurate when viewing new investments on Carta. This will help ensure accurate information for tax season.

Who this affects

Limited partners with fund investments on Carta and funds using Carta's fund admin and LP portal products

What's new

Limited partners can now review and update their information in the onboarding flow for their fund investment. 

  • Limited partners can confirm or update their address information
  • If a new address is added, they can use that for all of their fund investments

Timing

This was released for Limited Partners on January 14, 2021

Limited Partner Settings

The new Limited Partner Settings page allows Limited Partners to control their information across fund investments on Carta.

Who this affects

Limited partners with investments into funds on Carta.

What's new

Limited Partners can now manage and share their information across fund investments. Previously, Limited Partners had to contact their fund admin or the Carta support team to update their information. Now they can update their address and other information used for taxes and distributions in Settings.

  • Limited Partners can choose to use an address for individual fund investments or apply to all investments
  • When updating an address, a Limited Partner can choose to make that their “default” address to be used for any new investments added to Carta.
  • Partners investing through multiple entities can swap between entities and assign the correct information to each fund investment.


Timing

This went live to all Limited Partners on January 6, 2021

Exercise flow improvements

Optionholders at private companies will now see an improved exercising experience where they can clearly see fair market value (FMV), exercise spread, and option income. 


Who this affects:

  • Optionholders exercising option grants from private companies


What's new: 

  • Current fair market value (FMV) - Optionholders can see the current fair market value the issuing company has on file, which determines the tax implications of their exercise.

  • Exercise spread on option grant - Optionholders can see the per-grant spread when selecting a grant to exercise. This shows the difference between exercise price and fair market value.

  • Overall gain/loss - When selecting the quantity of shares to exercise, optionholders can see the overall gain/loss for their exercise. This is useful for understanding tax implications of an exercise.
  • Tax implications - Optionholders will be able to see tax implications more clearly. If the exercise is taxable and the issuing company has provided tax rates for the jurisdiction of the holder, the holder will see a table of the relevant taxes for their exercise. 





Carta now supports performance conditions for grants with custom vesting schedules

Performance conditions can now be set at the tranche level for vesting schedules that have been customized for an individual grant. Administrators can create custom schedules for individual participants and attach vesting tranches to performance conditions. 

With this enhancement, performance awards can now be attached to grants without vesting templates. This compliments our existing performance award functionality that allows for performance awards to be attached to vesting template tranches.


To create a custom performance vesting schedule, first select Custom vesting in the vesting schedule column when drafting an award:



This selection will bring up a vesting schedule creator. If the vesting schedule is unique to this particular grant, click Custom one time schedule. 

Note: if the vesting schedule for the grant is not unique, we recommend clicking Create schedule as template. Creating a template will allow multiple grants to use the same vesting pattern.



After clicking Custom one-time schedule, enter the vest dates and quantities. If a performance condition applies to one or more of the tranches, select it in the Performance Condition column.

Following the creation of the custom performance vesting schedule and the drafting of the grant, the grant’s vesting schedule and payout will be governed by the performance condition. From this step, the performance condition’s achievement and payout function in the same way as grants with standard and custom performance vesting templates:


Carta now supports multiple performance conditions on a single grant


Performance conditions for performance awards can now be individually set per vesting tranche. Administrators can control the payout of performance conditions, including payouts greater than or less than 100% per vesting tranche. 

Creating performance conditions using custom vesting templates

When creating a custom vesting template, performance conditions can be set at the vesting tranche level. These performance conditions are controlled through the performance module and administrators can set payout percentages upon condition achievement. 



Performance conditions will apply to every grant attached to the performance vesting template. 


Performance awards can also be added on to milestone vesting templates. These act as a second performance condition in addition to the achievement of the milestone event. Milestone vesting templates can be used with or without performance conditions:


Achievement of a performance condition will flow back to all grants tied to vesting tranches set up with that condition:




Email customization for document sharing

This month we released a new feature on Carta to allow users of a fund to customize the email sent to LPs when sharing documents. This feature is available for all Fund Administration and LP Portal customers. To use the feature:

1. Select ‘Share documents’ on the Documents page.

2. After select Share documents you will have three options for sharing documents: Send with daily digest, Send immediately, No notification.

3. When ‘Send immediately’ is selected you will have the option to
Open email editor.


4. The email editor will allow you to:

  • Customize the subject line
  • Customize the header
  • Customize the email body
  • Include dynamic fields in your text
  • Send a preview email to yourself before sending

 5. After completing the email customization, you will be able to share the documents to your LPs.


Performance Awards in Custom Reporting

You will now be able to see data related to performance awards in our custom reporting suite. 


These fields include:

Performance Condition - The name of the performance condition
Condition type - Whether the condition is event based, market-based, or non-market based
Vesting condition details - Any notes regarding this performance condition
Minimum payout - Lowest payout percentage, relative to the original grant amount
Maximum payout - Highest payout percentage, relative to the original grant amount
Vests post-termination - Whether the performance condition could be recognized during a PTEP period to allow vesting
Performance condition recognition status - Whether the condition was recognized or unrecognized
Recognition date - Date the condition is recognized
Actual payout percentage - The payout percentage, relative to original grant amount



You'll see these fields in these reports and are able to add them as optional fields in other custom reports:


Equity Awards outstandingEquity Plan Granted reportOptions outstanding report Securities Ledger 
Show Previous EntriesShow Previous Entries