Quarterly Salary + Total Cash Benchmark Refresh

What’s new?

Benchmarks version 2022-11-10

What changes can I expect from these benchmarks?

We have updated salary benchmarks for all job areas and specializations. We have also updated total cash compensation benchmarks for sales roles. Salary benchmark changes in this release reflect a slowing market for talent among startups. Most job areas saw little no change versus our last release, with increases/decreases of less than 1%. We saw most of the volatility in this release within engineering specializations, which have smaller sample sizes than the broader job area. Most notably, Mobile, QA, and Web Engineering all saw large increases across peer groups and levels, bringing pay for the various engineering specializations into closer alignment.

What were the largest areas of movement from these benchmarks?

IT, Sales, and Administration roles saw the largest increases ranging from 2%-5%, though the increases to IT and Administration roles are largely due to sample size changes. Support roles saw the largest decrease (4%). All other job areas changed by less than 1%.

Increases:

  • IT
  • Sales
  • Administration

Decreases:

  • Support

How do I update my plan to use the new benchmarks version?

You can update your compensation plan to use the latest benchmark versions either by:

  1. Visiting the Plan page and clicking on the "Update available" link in the Active Plan window.

  1. Navigating to the Bands page and clicking on the "Update" bubble in the top left.

You will have the opportunity to preview the new plan with the updated benchmarks version and assess their impact on your scorecard before accepting the new plan.

What’s next?

Carta Total Compensation is working on updates and improvements to our equity benchmarks in order to reflect the current labor market.

Optional Sections in Carta Closings


What’s new?

With Optional Sections, a new feature of Carta Closings, fund managers now have the ability to further customize their LPs subscription experience.

Create an even faster closings experience for your investors. 

Our Optional Sections feature allows you to hide sections of Carta’s Standard Investor Questionnaire, such as Qualified Purchaser (QP) or Qualified Client (QC), that may not be relevant to your fund or SPV. You can also disable, make optional, or require LPs to provide their wire instructions for future distributions as part of their subscription.

How does it work? 

1. On the Closings tab, select Closings Details.  Then, scroll down to Customize Sections

2. From here, you can make your selections to hide, require, or make optional the  wiring instructions, qualified purchaser, and qualified client sections. Then click Save

How do I learn more?

To learn more about this feature, please reach out to your account manager. 

Have additional questions about Carta Closings? Check out our fund manager resource and LP support article, or request a demo.

Updated Scorecard for Total Cash Compensation

What’s new?

Carta has updated the Scorecard to feature total cash compensation targets and compa-ratios for all employees within the sales job area. These targets will leverage the total cash benchmarks in combination with the parameters defined in your Plan. These changes will be reflected in both the company and employee scorecard.

How do I enable total cash compensation targets on the Employee Scorecard?

In order to access the new total cash functionality on the Employee Scorecard the employee must be within the Sales job area, total cash targets will be displayed for these employees regardless if they have been assigned variable compensation. For more information about assigning variable compensation checkout the following support article.

How do I access total cash compensation on the Scorecard?

Carta added the following columns to the Scorecard:

  1. Total Cash
  2. Total Cash Target
  3. Total Cash Ratio

These columns are hidden by default but can be enabled by:

  1. Navigating to the Scorecard and selecting the column dropdown.
  2. Select the “Total Cash” options that you’d like to include from the dropdown.

What’s next?

Carta Total Compensation is working to refresh our salary benchmarks in order to reflect the current labor market.

Custom Questions in Carta Closings

What’s new?

We understand the questions fund managers need answered by their LPs can vary depending on the entity. With Custom Questions, a new feature of Carta Closings, fund managers and fund attorneys now have the ability to customize their LPs subscription experience, ensuring no question goes unanswered.

If Carta’s standard Investor Questionnaire doesn’t cover everything you or your attorney needs answered by LPs while closing your fund or SPV, Custom Questions gives you the ability to easily add additional questions to our questionnaire. 

How does it work? 

1. On the Closings tab, select Closings Documents, then click Edit Appendix. 

2. You’ll be directed to a Get Started screen with two options: 

Option 1: Enter questions from scratch

If you have not previously added questions to another entity, you’ll start here. For each question added, you can designate whether the question be answered by all LPs, just individuals, or just entities.

Option 2: Copy Questions from another fund / SPV

If you have previously added questions to another entity, there’s no need to enter these questions again. Click Start copying and select which questions you’d like to copy to your current fund or SPV. 

3. Enter your question and then select how the answer should be provided by your LP (short text input, yes or no, etc.)  There’s no limit to how many questions you can add, or what you want to ask of your LPs.

4. Once your questions are entered you can  preview how they will appear in Carta’s investor questionnaire. After a final review, click Submit.

How do I learn more?

To learn more about this feature, please reach out to your account manager.

Have additional questions about Carta Closings? Check out our fund manager resource and LP support article, or request a demo.



Total Cash Compensation Benchmarks for Sales

What’s new?

Carta will now provide total cash compensation benchmarks for the Sales job area. Total cash compensation is defined as base salary plus target variable compensation. 25th, 50th, and 75th percentile data are accessible on the Bands page. In developing total cash compensation benchmarks we made minor adjustments to base salary benchmarks for the Sales job area. No other benchmarks have changed in this update.

How do I see total cash compensation benchmarks for the Sales job area?

You can view Total Cash Compensation benchmarks for the Sales job area by:

  1. Visiting the Bands page and selecting “Sales” under Area. 
  2. Select “Total Cash” for compensation type.
  3. This will allow you to view total cash compensation bands for levels 1 - 11 for the Sales job area.  

How do I update my plan to use the new benchmarks version?

You can update your compensation plan to use the latest benchmark versions either by:

  1. Visiting the Plan page and clicking on the "Update available" link in the Active Plan window.

  1. Navigating to the Bands page and clicking on the "Update" bubble in the top left.

You will have the opportunity to preview the new plan with the updated benchmarks version and assess their impact on your scorecard before accepting the new plan.

What’s next?

We will be updating the company and employee scorecards to reflect the addition of total cash compensation benchmarks

Variable Programs in Carta Total Comp is now available

What's new?

Variable Compensation Programs

We’re excited to share that Variable Compensation Programs is now available to all users.

Bring your bonus programs into your Total Compensation workflow

Eliminate your manual bonus processes, create better alignment amongst your sales organization, and ensure compliance by entering your commission and bonus programs into your compensation plan within Carta Total Comp.

Maintain your bottom line with a well-organized variable comp program

Variable Compensation Programs adds to our compensation management capabilities. With VCP you can:

  • Create variable compensation programs for your organization.
  • Enter variable compensation programs based on a  flat rate or percentage of base.
  • Assign the relevant variable program(s) to an employee.
  • Automatically calculate an employee’s variable compensation based on the parameters of their assigned VCP(s).

How do I create a Variable Compensation Program?

You can get started with VCP in seconds by:

  1. Navigate to the Plan page.
  2. Variable Compensation Programs can be found on the bottom half of the page.
  3. Click Create variable compensation program  to be guided through the process of creating your first variable compensation program.

How do I learn more or get help?

Visit the resource center for more details

Variable Compensation Programs (VCPs)

Have additional questions about VCP? Reach out to your Account Manager or contact our Support Team.

Commitment Increases in Carta Closings

What’s new?

Fund managers using Carta Closings can now easily increase their LP’s commitments directly in the Carta platform. 

We made closings even easier for you and your investors 

Save time by using our new, standard template that allows you to quickly execute a commitment increase for an LP who has subscribed to your Fund or SPV. Simply enter the details of the commitment change, sign, and share with you LP. 

How does it work?

1. On the Partners tab, select the LP whose commitment or contribution you would like to increase.

2. Enter the information required on our template:

  • Manager name: The name of the managing entity for the Fund or SPV
  • LP signatory: The LP, or the contact who will be signing on behalf of the LP
  • New commitment amount: The additional commitment amount the LP will be agreeing to
  • Effective date: You have the option of designating an effective date or making the effective date the date the LP signs the document 

Then, review and sign the document that reflects the adjustment to the commitment amount. 

3. Last, your LP will receive an email notification that the document is ready for their review and signature. They can easily e-sign the document using their LP Portal.


After the LP signs, the commitment increase is automatically booked in the Carta platform. Plus, Carta will share the countersigned documents with all parties. 

Carta makes this standard template available to all fund administration and SPV customers. You must first check with your counsel to ensure this template is suitable for your needs, and that you understand the legal and regulatory implications of increasing an LPs commitment amount prior to using this feature. 

How do I learn more?

To learn more about this feature, please reach out to your account manager.

Have additional questions about Carta Closings? Check out our fund manager resource and LP support article, or request a demo.
 

Offer Letter BETA is now available

What's new?

Offer Letter is now available in BETA

Carta Offer Letter is a fully interactive offer statement that communicates the full picture of a job offer—from salary to equity, benefits, and work culture. Everything a candidate needs to evaluate their next career move.

Communicate the potential value of your equity to candidates 

Carta Offer Letter will showcase your company's brand and culture, accurately reflecting each relevant job detail while concisely educating the full value of your candidate's total compensation package.

With Offer Letter, you can:

Make it easy for candidates to picture the future

Allow candidates to explore their potential total compensation over time with powerful, interactive scenario modeling tools.

Fast track your job offer process

Quickly write, extend, approve, and send your offer process with a complete administrative workflow.

Share your company's unique vision

Make winning offers using a customized letter elevating your brand, ensuring compliance, and driving higher acceptance rates.

What do I need to do?

Activate Offer Letters with a few clicks

In Carta Total Comp, navigate to the Offer Letters page, then click Start to begin sending offers.

How do I learn more or get help?

Visit the below support center articles for more details:

Setup Offer Letters

Create an Offer Letter

Candidate experience

Have more questions about Offer Letter? Reach out to your Account Manager or contact our Support Staff for further details.

IT Job Area & Refreshed Salary Benchmarks

What’s new?

IT Job Area

Carta will now provide salary and equity benchmarks for the IT job area. Target salary and  equity benchmarks for the 25th, 50th, and 75th percentiles are accessible on the Bands page. Additionally, compa-ratios will be provided to all employees who are assigned to the IT job area.

How do I see benchmarks for the IT job area?

You can view benchmarks for the IT job area by:

  1. Visiting the Bands page and selecting “IT” under Area. 
  2. This will allow you to view salary/equity bands for levels 1 - 8 for the IT job area.  

How do benchmarks for the IT job area affect the Employee Scorecard?

The compa-ratio is a quick way to compare an employee's compensation to your plan's target rate for a given job area, level, and location. The compa-ratios for an employee assigned to the IT job area will now be calculated using the target compensation for IT.

Benchmarks version 2022-08-15

What changes can I expect from these benchmarks?

Benchmark changes in this release reflect a labor market that continues to see increased salaries, though potentially slowing from what we observed earlier this year across a number of job areas. While most data points moved within +/-3% versus April benchmarks, those that are decreasing by statistically significant amounts are those with either Low or Medium sample sizes.

What were the largest areas of movement from these benchmarks?

With this benchmark update we observed larger than expected movement across a few job areas, driven largely by market dynamics but also changes in our underlying sample. Many of the decreases we observed continue to be in lower valuation ranges, generally concentrated in valuations of less than $25M. We observed significant decreases in the benchmark for Support Level 1 roles across most peer groups, driven in large part by companies re-mapping employees in this role to other job areas/levels. While the underlying sample for this role has changed significantly, the updated benchmark is more recent and fits our model better than the previous version. The increases in benchmarks that we observed are more evenly distributed across peer groups and levels. 

Looking by job area, we saw the largest average increases (ranging from 4% - 5%) and decreases (1%-2%) in the following job areas:

Increases:

  • Research
  • Project Management
  • Strategy

Decreases:

  • Administrative
  • Finance

How do I update my plan to use the new benchmarks version?

You can update your compensation plan to use the latest benchmark versions either by:

  1. Visiting the Plan page and clicking on the "Update available" link in the Active Plan window.

  1. Navigating to the Bands page and clicking on the "Update" bubble in the top left.

You will have the opportunity to preview the new plan with the updated benchmarks version and assess their impact on your scorecard before accepting the new plan.

What’s next?

Carta Total Compensation is working updates and improvements to our equity benchmarks in order to reflect the current labor market.


Carta Closings

What’s New

We revamped the entire limited partner (LP) experience of our closings product. Built with the feedback of the 20,000 LPs who have already closed on Carta, we’re excited to release Carta Closings, providing LPs the quickest and easiest way to subscribe to a Fund or SPV. 

How it Works

Carta Closings guides LPs through the subscription process and ensures that all LPs, from first-time investors to experienced institutions, have a smooth experience.

Improvements include:

A Shorter & Smarter Questionnaire

A typical investor questionnaire contains dozens of questions, most of which are irrelevant to a majority of LPs. We reduced the time your LPs will spend on subscription documents by building a smarter workflow that adds or subtracts questions based on LPs responses to previous questions.

Guided Support

Investor questionnaires can contain legal and industry terms that are confusing to some LPs. Now, LPs will see a dynamic in-app sidebar that defines these terms and provides answers to frequently asked questions throughout the questionnaire. 

Pre-Filled Investor Questionnaire

Once an LP fills out Carta’s Investor Questionnaire, their information is saved and will be auto-populated for all subsequent entities they subscribe to. This allows returning LPs to subscribe to new entities in seconds. 

Additional improvements: 

  • Forwarding subscription agreements: LPs can easily forward the documents to another individual to complete on their behalf, like a wealth manager or assistant. LPs will be notified when the documents are ready for their final review and signature.
  • Integrated data room: Carta Closings allows you to share fundraising documents with LPs at any time during the subscription process through our secure data room. Plus, LPs will be able to access their data room at any point during the subscription process. 
  • Wiring instructions & capital calls: Display wiring and initial payment instructions to LPs (optional) as soon as they submit their documents, and have your initial capital call automatically shared once the LP has been admitted to the entity. 
  • Instant KYC: Built directly into Carta Closings, receive instant KYC/AML compliance checks for your LPs (optional). 
  • Pre-filled W-9s: For U.S.-based LPs subscribing as individuals, Carta can now pre-fill a W-9 for them to review and e-sign. The W-9 is pre-filled based on the information the LP already provided as part of their subscription.

See how it works:

Who this affects

Carta Closings is an optional, free product available to all fund administration clients raising new funds or SPVs. 

More Resources

Support Article for LPs
Support Article for Fund Managers
Request a Demo

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