What's new?

Companies now can decide how they want their shares to be reallocated within the vesting schedules when stock splits are performed. Two vesting strategies can be selected now:

Option 1: Reapply templates

When companies choose the reapply templates option, Carta will automatically reapply the template for all securities with template vesting schedules upon performing the split. This means that Carta will re-calculate the vesting schedules attached to securities, considering the new total quantity. This can change how the vesting is distributed among the tranches since it will be an entirely new vesting schedule.

For example, a 10 shares grant that time vests with tranches of 2 and 3 shares will, after a 1:10 split, have tranches of 25 shares each if the company chooses this option.

Option 2: Apply stock split ratio to all tranches 

When companies choose to apply the stock split ratio to all tranches, Carta will multiply the stock split ratio by each tranche. In case the shares remaining in a tranche are fractional, the platform will then round down to the nearest integer. This results in fewer differences in the schedule from the pre-split to the post-split security. If a security is tied to a template vesting schedule, Carta will need to update it to a custom schedule to make this change. Custom vesting schedules cannot be reapplied later, as they are not part of any templates.

If companies choose this option, a 10 shares grant that time vests with tranches of 2 and 3 shares, after a 1:10 split, will have tranches of 20 and 30 shares each if this option is chosen.

Why is this important?

Different companies need their post-split vesting schedules to be represented differently. With this change, Carta becomes more flexible to adjust to different vesting scenarios. Having more vesting accommodation strategies also means less time dedicated to manual adjustments after a stock split is performed.

How can I learn more about this?

You can find a detailed explanation of the new vesting strategies with vesting schedule examples in this support article.

What’s new?

Private companies on Carta can now run Dilution reports. The Dilution report will include: 

• Incremental Shares
• Weighted Average Shares Outstanding
• Average Trading Prices

All 3 of these values will help customers calculate Diluted Earnings Per Share for their income statement. 

What’s important or valuable about this change?

Private company Financial Reporting administrators will be able to run a Dilution Report that will provide them with major inputs into the Diluted Earnings Per Share formula. 

In this release, the following will be available:

• Shares outstanding

  • Simple average
  • Weighted average

• Trading prices

  • Simple average
  • Weighted average
• Incremental Shares
• Supporting tabs to help auditors tie out values

What do I need to do?

Log in to Carta and go to Compliance > Financial Reporting. Run a new report (must be 1 year or less reporting period). In the drop down menu to download other reports, such as SBC Expense and Min Disclosure, there will be an option for Dilution. 

Have questions? Contact 718@carta.com 

What’s new?

Soon, you will be able to access 8 new reporting templates under Capitalization > Reporting, which provide you with access to critical data points about your equity pool, company, securities, and stakeholders. You will be able to see exactly how your key option pool values are derived, view equity awards joined with Grant Reason and Employee ID, and even export a detailed list of stakeholders and their properties.

Why is this important?

We’ve been listening to every piece of feedback from you, and have heard the challenges that you face. The new reports address these challenges, providing visibility into how key pool values are derived, and giving you reporting access to over 60 key fields that were spread across multiple places, and in some cases, previously un-reportable.

Those 8 template reports are:

• Equity pool transaction ledger: A detailed view of shares available to issue from your equity pool. This new report includes a double-entry activity log for every transaction so you can see, line-by-line, exactly how available shares and other plan values  were derived.
• Common securities ledger: A ledger of all Common shares in Carta.
• Equity awards outstanding: A detailed view of all outstanding equity awards across all plans on Carta. 
• Equity plan granted: A ledger of all securities granted from the equity plan. 
• Options outstanding: A detailed view of all outstanding options across all plans on Carta. 
• Securities ledger: A ledger of all securities tracked on Carta. 
• Share registry:  Used by companies in many countries to create a share/equity register or register of holders.
• Stakeholder details: Full list of stakeholders and their properties.

What do I need to do?

You should be on the lookout for an email from your CSM letting you know that these reports are now available for you. Once you get that email, you can go to Capitalization > Reporting, and you will see the following view, where the newly added reports will have a ‘New’ bubble next to them:

From there, you just need to export the report as usual!

Where can I learn more?

For more information on exporting reports, visit our support site. We will be adding additional information to the support site as reports are updated and improved.

What’s new?

Benchmarks version 2023-23-02

What changes can I expect from these benchmarks?

We have updated salary, total cash, and equity benchmarks for all job areas and specializations. 

Salary and total cash compensation benchmark changes in this release reflect a slowing market for talent among startups, falling slightly since last quarter (approximately 1% overall). As in previous updates, specialization level data continues to be more volatile than the broader sample, as sample sizes for these roles are smaller than job area level data. For example, while Web Engineering and Quality Assurance saw large increases last quarter, this quarter’s data shows decreases in those benchmarks. 

Equity benchmarks have decreased approximately 15%, consistent with the decreases that began last quarter as a result of the slowing market. Lower benchmarks cut across most roles and levels, though executive equity grants (particularly at early to mid-stage companies) dropped slightly less, and even increased in some cases. 

What were the largest areas of movement from these benchmarks?

Salary - Product, Support, and Operations roles saw the largest increases, approximately 1-2% versus last quarter. Sales, Administrative, and Information Technology roles saw the largest decreases ranging from 3-5%.

Equity - Legal, Support, and Human Resources roles saw the largest decreases. Decreases in Engineering, IT, Finance, and Operations were less pronounced than the overall sample

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 to bring International market targets to the Employee and Company Scorecards, as well as developing benchmarks for new specializations.

What’s new? 

This release improves the workflow for matching employees with stakeholders on Carta. Employees with the same name and email as the stakeholder will automatically match, saving their employee ID and thereby linking the stakeholder with the employee record. The improved workflow guides you through reviewing all other employee matches. 

How does it work? 

For the reviewed matches, you can now ignore, to be reminded next time, or to choose a different stakeholder. These decisions will be saved and will not need to be rematched when running the employee matching workflow. You can now review all matches and update the decisions later. 

What do I need to do? 

To get started, you will need to connect your external data to Carta either through connecting your HRIS system, uploading a spreadsheet, or pasting the information into Carta directly.

With your external data connected, Carta will attempt to automatically match your employees. From there you review suggested matches, deciding to approve the suggestion, ignore it, remind me later, or manually choosing a different person.

If there are any employees from external data that don’t match at all to Carta stakeholders, you can choose to ignore them or manually choose a person to match.

The workflow is then completed and all matches can be reviewed.

How do I learn more?

For more information on Employee Matching, please read our support article.

What’s new

Total Comp customers can now send Offer Letters in 140 international currencies. Candidates will be able to view their Offer Letter in their local currency. 

Get started 

How do I send an Offer Letter in a non-USD currency?

1. Navigate to the Current Offers page and click “Create Offer.”
2. In the “Compensation” section, select the correct currency for the candidate’s Offer Letter. Companies are still able to offer multiple packages for international offers.

3. Enter the Base salary in either the local currency or USD.

4. The Equity value can be entered in USD only. However, you will be able to see this displayed in the local currency selected as well when you preview the Offer Letter before sending it to the candidate.

5. Candidates will be able to view their Offer Letter in the selected local currency.  This includes their benefits, Offer Summary, and the Compensation Projection chart. 

Learn more

Visit the Carta Offer Letters resource center for more details.

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

What’s new?

The Share Class Manager page will be updated this coming Monday, February 6th to make it easier to navigate, and provide a consistent experience when you are updating AOI terms.

We no longer display a "Link AOI" button at the top of the page. The new flow is designed to be simple and intuitive, with the "Manage Share Class" button giving you access to update existing share classes, add new share classes, and link Articles of Incorporation.

What do I need to do?

Navigate to Capitalization > Manage share classes. Under Manage share classes, there will be three options:

• Create new share class
• Edit existing share classes
• Add historical AOIs

Where can I learn more?

Visit the Share Class Manager support article or contact us via the In-App Help Center.

What's new?

Private dilution reports can be run on Carta.

How does it work?

Private company administrators will be able to run a dilution report that will provide them with diluted shares, average trading prices, and supporting tabs to back out the incremental shares tab. 

In this initial release, the following inputs will be available:

1. Average and weighted average trading prices, including the ability to add Fair Market Values on weekends and holidays
2. Diluted shares
3. Supporting tabs to help users recalculate their incremental shares tab

In the future, Carta will also support:

• Pre stock split values in dilution reports
• Weighted average shares outstanding (WASO)

What do I need to do to get started?

To participate in the beta and receive early access to this report, please reach out to us at 718@carta.com.

What’s new?

We have two exciting updates now available in Carta Total Comp. You can now use: 

• International salary and equity adjustments on the Plan and Bands pages
• Total cash compensation benchmarks for the Customer Success job area

International adjustments

Users will now be able to view salary and equity benchmarks on the Bands page based on adjustments from our US benchmarks. In this initial release, users will have access to adjustments for 45 countries.

How do I see international adjustments?

You can view international adjustments by:

1. Visiting the Plan page and scrolling down to International Market Adjustments. This section will show you suggested adjustments for salary and equity across 45 countries. These suggested Adjustments are based on Carta data and our knowledge of local market practices.
   
2. You can override these suggested adjustments to better match your company’s comp philosophy. Click into them to edit, and save your new adjustment by clicking the check box.
   
3. Visit the Bands page to view the adjusted salary & equity benchmarks. Find any of the 45 countries by selecting it from the Location dropdown.
   

Total cash compensation benchmarks for Customer Success

Carta will now provide total cash compensation benchmarks for the Customer Success 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. No other benchmarks have changed in this update.

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

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

1. Visiting the Bands page and selecting “Customer Success” 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 Customer Success 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.
   
2. Navigating to the Bands page and clicking on "Update" 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.

Learn more

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

What’s next?

Carta Total Comp is working on updated salary and equity benchmarks for all job areas and specializations.

What’s new?

We're introducing an easy way for new Carta Total Comp users to send their first offer letter in just a few clicks. With our new guided onboarding experience, you can get the most out of CTC immediately.

The setup guide will be marked as complete for users with Offer Letters already set up. 

Get started 

You must have "Full Admin" permissions to set up Offer Letters.

1. Navigate to the Offer Letters page and click “Get started.”
   
   
2. Complete the guided onboarding experience to personalize your Offer Letter for your company.
   
   
3. Once you complete your setup, all Admins, Area Leads, and Recruiters will be able to draft, preview, and send Offer Letters. 

Learn more

Visit the Carta Offer Letters resource center for more details.

If you have additional questions about Offer Letters? Please reach out to your Account Manager or contact our Support Team.