Tax Withholding Estimates during Order Entry (Capital Markets)

What's new?

Sellers participating in a private market secondary transaction, such as a tender offer, on the CartaX ATS can now view their estimated tax withholdings* during the Order Entry phase. Equipped with estimated tax information, sellers who are US-based employees will be able to make a more informed decision when determining sell preferences and better anticipate their net proceeds.

How does it work?

Issuers sponsoring a tender offer or another structured transaction will provide Carta with their employees’ city, state, and/or federal jurisdictional tax rates. Carta will use the applicable tax rates to calculate their individual estimated tax withholding. 

As sellers select which of their eligible stock holdings to sell during the Order Entry period, the Proceeds Calculator on the right hand side of the screen will automatically update and calculate what their estimated net proceeds may be after fees and taxes*. 

Sellers can then click on “View tax details” (hyperlink within the red box above) to view a breakdown of the estimated tax withholdings by security type and tax jurisdiction.

Enable your employees to understand their estimated tax obligations earlier in a tender offer when placing their sell orders.

The Tax Withholding Estimates during Order Entry will: 

  • Enable sellers to see how their security elections during the Order Entry period may impact their estimated tax withholdings, and ultimately, expected net proceeds; and
  • Save Issuers time by helping to reduce the amount of questions received from sellers about their potential tax withholding obligations. 

 Reach out to Carta to get the process started

Do you want to run a tender offer or other private secondary transaction with a fully-integrated cap table experience? Reach out to Carta Liquidity’s Corporate Coverage team at company_coverage@cartacapitalmarkets.com to figure out the best path towards liquidity. 


*Note - The estimated tax withholdings is for illustrative purposes only. The withholding amount shown is only an estimate. The actual amount withheld from a seller’s proceeds may differ significantly from the amount shown. Tax withholding is not a final calculation of taxes due. A seller may have a greater or lesser tax obligation than the amount withheld by the Issuer, and the seller is responsible for determining whether and when any additional tax payments are required. 

Disclaimer: Carta, through its wholly owned broker-dealer subsidiary, Carta Capital Markets, LLC, offers a streamlined experience for executing pre-negotiated stock transfers, tender offers, and other secondary liquidity transactions. Carta Capital Markets, LLC is a member of FINRA/SIPC.

Issuer Transaction Dashboard (Capital Markets)

What's new?

Issuers running a secondary transaction, such as a tender offer, through Carta Liquidity on the CartaX ATS can now access on demand real-time seller participation data during a live transaction via the Issuer Transaction Dashboard (“Dashboard”). 

How does it work?

Issuers can access their brokerage account online and click on their live transaction, where they will see their Dashboard. The “Participation overview” tab includes three key sections:

  • Participation breakdown: The pie chart provides a summary of the transaction’s subscription rate by Relationship type. Issuers can quickly see how close the transaction is to being fully subscribed. Relationship type is determined during the transaction’s setup period.
  • Participant engagement: The bar chart details the number of sellers who (a) have been invited to the transaction, (b) viewed the transaction, and (c) decided to participate by tendering shares.
  • Relationship summary: The table summarizes the participation level across all Relationship types. Details include the participation rate, shares tendered, and the notional value of tendered shares.

The table and charts on this page will update in real-time during the live transaction. 

The “Transaction overview” tab of the Dashboard will be accessible at the close of the offering period and provides a summary of the transaction, including a breakdown of deposits made into the Issuer’s brokerage account. Issuers will be able to access and download their Trade Confirmation and Transaction Summary reports here as well.  

 

Save time and gain real-time transaction and participation data on demand with the Issuer Transaction Dashboard

The Issuer Transaction Dashboard will: 

  • Give you real-time transaction and participation data on demand during a live transaction;
  • Provide you with full oversight and enhance your foresight over the transaction’s results related to filling a buy order; and 
  • Make it easier for you to provide your team with updates on a transaction and Relationship type level, preserving the confidentiality of individual seller activity.

Reach out to Carta to get the process started

Do you want to run a tender offer or other private secondary transaction with a fully-integrated cap table experience? Reach out to Carta Liquidity’s Corporate Coverage team at company_coverage@cartacapitalmarkets.com to figure out the best path towards liquidity. 

 

Disclaimer: Carta, through its wholly owned broker-dealer subsidiary, Carta Capital Markets, LLC, offers a streamlined experience for executing pre-negotiated stock transfers, tender offers, and other secondary liquidity transactions. Carta Capital Markets, LLC is a member of FINRA/SIPC.

Account Recovery Measures

Who This Affects

Users without a verified secondary email address

What’s New

Additional emails are required to assist users with providing a secondary login credential in case access to their primary email address is lost. As part of our efforts to improve our clients' account security, we are updating the process of adding and verifying your additional email address. 

As part of this release, we will be notifying all users without a verified additional email address to add or verify the email they have listed. This subset of users will be receiving an email notification, as well as an outstanding task in their Carta account’s task manager. 


Timing

  • This update is available to 25% of randomly selected Carta users
  • General availability for all users by the end of Q2

View Public Company Holdings on Mobile

Users with holdings in public companies will now have the ability to view their holdings for both public and private companies straight from the Carta iOS app. Shareholders can now track market values, view total holdings value and more.

Who this affects

Shareholders with holdings in public companies.

Supported platforms

  • iOS (Android coming soon)

What's new

With an aim to provide functional and streamlined experiences for shareholders, we’ve brought the ability to view public holdings on the Carta iOS app. Public company cards will now be present among private companies on the home screen. The following information will be displayed for each public company card with the ability to view further details when clicked:

  • Total number of shares held
  • Total holdings value
  • Net holdings value

New Shareholder Experience Page

We are making it easier for companies to keep employees, investors, and other stakeholders informed about their holdings and company changes. 

Companies have historically been able to grant viewing permissions to their stakeholders via our Cap Table Sharing page and features. This experience, however, was burdensome for many company administrators who found themselves having to change sharing settings as new stakeholders were added to their cap table or existing stakeholders changed their relationship to the company, such as an employee leaving the company or an investor exiting their position.

With our new Shareholder Experience page, company administrators can designate what type of information they want to share with their different stakeholders and set rules based on these preferences. By setting permissions by rules instead of a stakeholder-by-stakeholder process, we make it easier for company administrators to get the right stakeholders the appropriate information and reflect their information sharing philosophy.

Companies can choose to enable a specific shareholder experience based on the relationship of the stakeholder to the company. For example, companies can choose what information founders, investors, employees, and former employees, and other stakeholders access on Carta. We’ve renamed, updated, and simplified our access levels to Restricted, Basic, Advanced, and Full Details. We include a “Recommended” level for different relationships (e.g. Investors = Advanced) to help guide founders and other company administrators on setting up their Shareholder Experience based on user feedback. 

We’ve also added a new rule where former stakeholders--those who no longer have an active investment or holding in the company--will automatically be downgraded to Restricted automatically. This means that as stakeholders enter and exit the cap table, their respective shareholder experience will update automatically.

New Shareholder Experience page: Group levels

We know that sometimes it’s important for company administrators to create experiences specific to a single stakeholder or user. The new Shareholder Experience feature allows companies to set overrides for specific stakeholders in the “Individual levels” tab. We also provide information on that stakeholder’s relationship and holdings information.

New Shareholder Experience page: Individual levels



To help ensure company administrators set access levels that best fit the needs of their stakeholders, our access level guide is clickable from either the Group Level or Individual Level views of the new Shareholder Experience.

Access level guide

We appreciate our users’ feedback on how to make this page clearer and easier to use. We hope these improvements save company administrators valuable time and help them mirror their company information sharing philosophy in our software.

Who is this available for?

The cap table sharing page is available currently via a limited release to select Carta companies. In the coming weeks, we will begin to allow additional companies to migrate to the new Shareholder Experience feature set. This new product is not limited by subscription tier.

Companies with the new Shareholder Experience features enabled can visit Stakeholders > Shareholder Experience. 

If you’d like to enable the new Shareholder Experience page for your company, you can also contact us.

Home Screen Redesign on Mobile

Users with holdings in private companies can now view their holdings details straight from the home screen for easy access.

Who this affects

Shareholders with holdings in private companies.

Supported Platforms

  • iOS & Android

What’s New

With an objective to provide insightful experiences, we’ve redesigned the home screen on the Carta app to display important holding details for each company. Company cards will now present the following information with the ability to view further details when clicked:

  • Total number of options held, number of options vested and exercised 
  • A vesting progress bar comparing the number of vested and exercised options to the total options granted
  • Summary of securities displaying types and quantities for each held

Carta has released a share activity report to help stakeholders track their public holdings

What’s new?

Public company stakeholders can now download share activity reports that capture their transaction activity and change in shares held during any period.

How it works:

By clicking on the new Statements tab, public company stakeholders enter in the start and end date that they would like to analyze:


The resulting report captures holdings at the beginning and ending of the period, and captures any transactions that cause an increase or decrease in the number of shares the participant holds.

Overall change in ownership is tracked in the Portfolio at the end of period section. Holdings are separated into shares originating from ESPP (Employee Stock Purchase Plan) and non-ESPP sources. The section shows holdings in these categories at the beginning and end of the period.


The Equity transactions in period section captures all transactions to equity (non-ESPP) shares during the period.


The following transactions are captured in this section, including the net effect of the transactions on a stakeholder's holdings

  • Option exercises, including the effect of any shares sold to cover option cost and taxes
  • RSU settlements, including any shares sold or withheld to cover taxes
  • Shares sold
  • Shares transferred in to Carta
  • Shares transferred out from Carta

The ESPP (Employee Stock Purchase Plan) transactions in period section captures all transactions that affect ESPP holdings.

This section captures the transactions below, including the net effect of the transactions on a stakeholder's holdings

  • ESPP purchases
  • Sale of ESPP stock
  • ESPP shares transferred in
  • ESPP Shares transferred out

The report also captures transactions that have been entered into Carta for record-keeping purposes. These transactions do not affect holdings and typically reflect transactions where shares are held or sold at an outside brokerage. 

Transactions in this section include:

  • Option cashless sale or hold transactions facilitated by outside brokers (where shares are sold or held outside of Carta)
  • Option exercises where shares are delivered or held outside of Carta
  • RSU settlements where shares are sold or held by outside brokers

Who can use this?

All public company stakeholders

Timing:

Stakeholders will be able to access this report through their portfolios starting 7/9/2021

User demographic survey for Table Stakes 2021

Announcing a new survey to collect demographic information for Table Stakes

Carta users can now elect to provide their demographic information under the user profile section of their accounts.

Why is this important? 

In 2018, the #ANGELS hypothesized that the gender equity gap was worse than the salary gap. Carta collects the data to help track and analyze what they called #TheGapTable. Together, we created the first ever report on equity distribution by gender and have continued to create it every year since. Equity is the largest lever for wealth creation in Silicon Valley and beyond; we believe it should be distributed equitably. This year we are focused on bringing that data into our application and making this demographic survey more powerful than ever.

What’s new?

When stakeholders navigate to their user profile they will now have a link to a demographic survey that will be used to power the data analysis for Carta’s Table Stakes in December 2021. We encourage all users to participate as each data point contributes to a more powerful analysis.

Navigate to your name in the top right corner and then “Profile and Security” before selecting “Fill out your demographic information”

Who this is available to

All users located in the US. Users who have opted out of communications or have asked to be added to our “do not analyze” lists will not be included in Table Stakes or other analyses.

Posted on behalf of Jessica Ray who led this project.



Make better compensation decisions faster

Carta Total Comp 

Carta cap table customers can now access our benchmarking and planning platform to streamline their compensation processes and compensate with confidence.

What’s new?

Workflow tools built on top of the world’s largest equity data set and powerful HR integrations to help you make better compensation decisions faster. Carta Total Comp customers are now able to access the following compensation benchmarking and planning features:

  • Automated Leveling - Map each of your employees into an area, track and level using Carta’s universal leveling framework.
  • Scorecard - Summarizes employee salary and equity information from your HRIS and cap table to give a holistic overview of your organization’s total compensation.
  • Bands - Automatically generate equity and salary bands for any role by filtering for job area, track and location.  
  • HRIS Integration -  Integrate instantly with any of the most common HRIS systems.
  • Coming Soon - Plan -  Easily build, manage and apply your compensation strategy across your employee base.

Get a pulse on your org through your company Scorecard tab



Benchmark any role in the Bands tab

Availability

  • If you are interested in learning more about Carta Total Comp, please reach out to your Carta Customer Success Manager or sign up here.
  • You must be a Carta cap table customer to sign up for Carta Total Comp.

Additional Resources 

  • Carta Total Comp announcement from our Chief Product Officer, Heidi Johnson. Link to Blog Post.

Exercise History - Shareholders can now centrally view their complete exercise history

Users can now access their exercise history across their entire portfolio in one spot. This makes it easy to review their activities over a defined time frame - like a tax year! 

Who this affects:

  • Shareholders who have exercised a private company option grant

What's new:

  • Find all exercise details in one location - Within Exercise History you can see a report of all your exercises across your entire portfolio. This makes it easier to get an at-a-glance view of your exercises activity.
     
  • Filter for specific companies or date range - Narrow your report by company or date range to customize your report.

  • Customize your report - Choose which fields are relevant for a given report.

  • Export your report - Download and view your report in a portable CSV format.

Timing:

  • Released March 2021
  • Support for all public company exercises coming Q2 2021

Where to find Exercise History

  • When viewing your portfolio, select the Account drop down menu to find Exercise History



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