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.

Introducing Luxembourg SPVs

What's new?
You can now fund the next global deal from anywhere in the world. 

We are introducing Luxembourg SPVs by Vauban from Carta—the easiest and most cost-effective way to launch an SPV in Europe. Following the release the first fully digital Luxembourg venture fund product, we’ve expanded our offering to service SPVs.

Our end-to-end platform handles everything from SPV formation and banking to LP onboarding and administration.

How it works?

Login to the Vauban Platform to your universe to create a new deal.

Click on + New Deal in the top right-hand corner. 

Step 2: 

Choose Luxembourg as your SPV Jurisdiction!

Step 3:

Set up your SPVs by providing the necessary information. We take care of the legal generation, banking, investor onboarding, and closing.


Raise internationally
Luxembourg SPVs are built for international investors. Fund global deals and onboard LPs across 72 countries and 135 currencies.

Reduce costs
Luxembourg is home to venture capital and private equity in Europe, but the costs of setting up an SPV can be as high as $300,000. With Vauban from Carta, you can spin up an SPV for a fraction of the cost.

Save time
Our end-to-end platform allows you to skip the time-consuming regulatory and legal demands of raising in Europe. This will enable you to focus on finding unicorns and building your investor base.

What do I need to do?

To learn more about Luxembourg SPVs, click here.

If you’re interested in setting up a Luxembourg SPV, please reach out to hello@vauban.io


Introducing Session Types for Tax Advisory


What's new

Employees who have access to Carta Tax Advisory through their employer may now choose from up to four different tax advisory session types. This aims to provide transparency and flexibility so you can have the conversation that's right for you. 

Who this affects

US-based employees subscribed to Carta Tax Advisory through their employer

How it works

Scheduling a session

Log in to your  Carta employee account, navigate to the Tax advice tab.

From there, click on "Book a free session" to browse different session types. 

Once you're on the session type selection page, you'll see a brief outline on how to schedule and a selection of three to four different session types. 

Select the session type that's right for you and click "Schedule free session" to book a time with a tax advisor. 

If you're not quite sure where to start, we recommend starting with the "Understand equity basics" session type to learn about your equity and taxes at a high level.

Note: The "Discuss tender offer participation" session type only appears if your company is currently undergoing a tender offer. 

Preparing for a session

Session types: Discuss tender offer participation | Create tax scenarios

Once you've scheduled a time to speak with a tax advisor, you'll be prompted to upload a few documents. Tax advisors will create personalized tax scenarios using this information so you can have the most accurate tax picture. 

If you don't have these documents on hand now, you can skip this step for later. However, you must upload documents at least 24 hours before your session so advisors have enough time to prepare. 

After uploading your documents, you're ready for your session. 

You'll receive a calendar invite with a zoom link to attend your session at your scheduled time. You can also see this information in your tax advice tab in Carta, with the option to reschedule or cancel using the "View details" button. 

Session types: Ask a quick question | Understand equity basics

Once you've scheduled a time to speak with a tax advisor, there's nothing else you need to prepare ahead of your session.

You'll receive a calendar invite with a zoom link to attend your session at your scheduled time. You can also see this information in your tax advice tab in Carta, with the option to reschedule or cancel using the "View details" button. 



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.
 

Redesigned 409A Acceptance Flow


What’s new?

We have redesigned the way you review and accept your 409A valuation on Carta. This new design presents you first with a quick summary of the analysis along with a note from your analyst letting you know the next steps in finalizing your fair market value (FMV). Once you have reviewed the report, if you have any questions you can contact our team of valuation experts through the support module in the valuation review portal. Lastly, receive board approval from within or outside of Carta to finalize the current FMV on your account. 

How it Works

Once you receive an email notifying you that your valuation is ready for review, you can follow the link within that email to access the 409A ledger where you are able to review and download your valuation. Alternatively, you can navigate to the page within Carta at Compliance > 409A Valuation.




Review your valuation

From the 409A Ledger, once you select ‘Review 409A report’ you will be directed to the valuation review portal. Here you will find an overview of the analysis performed and the concluded FMV along with a note from your valuation analyst informing you of next steps and noting any details within the report that warrant extra attention. Once you have reviewed the analyst’s note and valuation summary, you can download the full report or access the support module from the valuation review portal to access support articles or get in touch with our team of valuation experts. 


Get board approval

Now that you have reviewed the valuation, the next step is to send it to your board for review. You can do so using the board consent feature within your Carta account to easily track acceptance from each board member within the Carta platform. Once all board members have submitted their board approval through the platform, your valuation will automatically be accepted on Carta. If you got approval outside of Carta, that’s great too, simply select ‘My board has approved’ to accept the valuation to finalize the current FMV in your account. Once finalized, the new FMV will be visible to your option holders on Carta.




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.

New Hire Onboarding for Tax Advisory

What's new

New hire onboarding allows new hires to access their Carta account before they receive and accept their equity grant. By creating a stakeholder record for the employee, employees receive an email to register for a Carta account. This grants them access to Carta Tax Advisory.

If you do not add new hires they will need to wait to accept their equity grant in order to access Carta resources, which can take several months to approve and issue. 

New employees often have questions about their equity as soon as they join a company, Carta Tax Advisory gives them access to dedicated 1:1 support from equity tax experts from day 1 to help them understand their equity packages. 

Who does this affect?

Companies subscribed to Carta Tax Advisory

US-based employees (new hires) at companies subscribed to Carta Tax Advisory

How can I give new hires access to their Carta account?

Important notes before starting: 

  1. The new hire onboarding process only applies to companies subscribed to Carta Tax Advisory
  2. Tax advisory sessions are only available to US citizens or residents
  3. Adding an employee into Carta as a stakeholder provides them access to Carta services like Carta Tax Advisory. Ensure you only add employees you intend to issue equity to.

The Stakeholder ledger allows users with Company editor or Legal administrator permissions to view and modify information for a person that holds multiple securities across the company 

Navigate to Stakeholders > All Stakeholders


Under the Manage Stakeholders drop-down, admins can add stakeholders individually or in bulk

Individually add stakeholders

Select “Add stakeholder” in the Manage stakeholders dropdown list



A modal will appear requesting information about the stakeholder

Required fields:

  • First name
  • Last name
  • Relationship (i.e. employee)
  • Relationship effective date
  • Add and save an address 

Tax ID, Employee ID, Payroll ID, and other address fields can be input as available, but are not required before equity grant issuance

Bulk add stakeholders

Select Bulk add stakeholders from the Manage stakeholders dropdown


Download the template spreadsheet to import stakeholders’ information, save, and upload the modified file. Carta will run a check on the data entered before saving the changes


Note: Admins should not add new columns or move columns in this sheet. They must use the template as is


Required columns: 

  • First name
  • Last name
  • Relationship (i.e. employee)
  • Relationship effective date (MM/DD/YYYY)
  • Country (3 digit) 
  • State (2 digit)

After the updated xslx sheet is uploaded, click “Submit changes” and a confirmation modal will appear

Confirm to complete stakeholder creation


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.


Valuation Updates for SAFEs and Convertible Notes In-App

What's new?

Valuation Updates: Easily mark up or down SAFEs or convertible notes!

What’s important or valuable about this change? 

We've expanded the capabilities of our valuation update flows to enable clients, where appropriate, to mark up or down SAFEs or convertible notes. We created an addition to the flow which highlights audit and other considerations clients should have when marking up or down convertible assets, and given them the ability to complete this when applicable for their use case.

What do I need to do?

Check out a step by step guide on updating your valuations in-app here.

Here is a summary of how it works: 

  1. Login to Carta, navigate to investments, and click “Update Valuation”
  2. Add a new share price or holding value (the full value of your investment in the asset) for each investment you want to mark up/down
    1. Optional: submit any supporting documents like cap tables/purchase agreements
  3. Carta will check your input for accuracy and automatically post successful changes to your SOI, IRR, and financials. Otherwise, we will review the update first and reach out as needed.

As a reminder, here is a walkthrough of in-app valuation updates:

  1. Log into Carta and navigate to the fund with the investment that you want to update. 
  2. Go to the Investments tab on the top navigation bar and select the Update Valuation option in the top right side of the page. 
  3. Select the portfolio company (or companies) for which you want to update the asset values.

Note: Convertible assets are not able to be selected for marking up or down. For common questions about types of valuation updates, see this FAQ in the Valuations 101 support article, highlighted below,

  1. For each investment, specify the new price per share. For assets without shares, specify the new total holding value. You can observe the change in gain or loss based on the new value. 
    1. Value per share vs total holdings value: Assets that have shares can be marked up or down by share price, or by total value of the asset. These include preferred and common equity.
      Assets that do not have shares and change in value can be marked up by total holdings value. These include Partnership interest and membership interest. Reach out to your fund administrator if you have a specialty asset type and need assistance.
    2. Document support: Supporting documentation is strongly encouraged, but may be added later by emailing your fund administrator. Stock Purchase Agreement is preferred, however any documentation from the company that indicates the new value/value per share and is credible should be included otherwise for your FA to review. For unaudited funds, a screenshot of an email from the founder, for example, can also be provided for review, in absence of other documentation.
  2. Next, confirm which funds you want to apply this valuation update to. All funds in your firm that hold the portfolio company will be listed. In most cases, all funds should be selected. 
  3. You will repeat steps 4 and 5 for each portfolio investment you selected to update. 
  4. On the final review screen, confirm all the updates you made for each investment. Click Back to revise, or Submit if everything looks correct.
  5. After submitting, Carta will automatically check that the update is within reasonable range. If it passes, the changes will show immediately on the investment tab. If further review is required, a task will be generated for your fund administration team. If they need more information, they will reach out directly within 3-4 business days.  

Additional Resources:

FAQs for Updating Valuations


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