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 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. 



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.


Payment Status Updates

What’s New

The Payment Status Updates on the Exercising workflow provides users a more accurate reflection of the status of their exercise during the money movement step of the exercise. Error messaging will now provide a single failure message clarifying what caused their exercise to become stuck during the money movement step of the exercise including errors around cancelation requests, bank account removal, and insufficient funds in the bank account.

Who this affects

All users exercising for private companies on Carta.

How it works

Today, users can view the status of their exercises in progress on the Holdings page and with the new Payment Status Update feature, these exercises will now display an ‘Error’ bubble beside the active step when the exercise gets stuck. Clicking the ‘View details’ button will navigate the user to the Exercise tab on the Option grant modal with user instructions to help resolve their stuck exercise. 

On the Exercise tab, error messaging will provide user action to contact their company admin through the Option grant modal’s Report Issue tab, to contact Carta Support through the chat, or update their bank account information on the Payment Information page. 


Insights for Carta Total Compensation

What’s new?

In order to communicate more information about the benchmark data in Carta Total Compensation, we are now providing several metrics to provide greater clarity around both our peer groups and individual benchmarks. This new information includes aggregate sample size data, benchmark confidence indicators, and more information about each job area/level (including details like complexity, autonomy, and scope).

Aggregate sample sizes in Total Comp

The Bands page now highlights the aggregate sample size to give you insight into the data that contribute to Total Comp’s benchmarks for a particular peer group.

How do I locate the aggregate sample size for a particular peer group?

  1. Navigate to the Bands page.
  2. Select your peer group.
  3. The aggregate sample size for said peer group will be listed under the selected peer group.
  4. This includes both the number of records as well as the number of companies which factored into the benchmarks for the specified peer group.

Benchmark Confidence 

Carta provides confidence metrics for sample size, recency, and goodness of fit to understand Carta’s stated confidence in the benchmark for a particular band. Confidence metrics are calculated for the band (job area x level) across all peer groups. 

  • Sample size: The number of datapoints included in this benchmark.
  • Recency: The relative proportion of newly effective datapoints underlying the benchmark.
  • Goodness of fit: The accuracy of the model to predict benchmarks based on trends in the underlying data. 

How do I find the benchmark confidence for a particular band?

You can find the benchmark confidence for a particular band either by:

  1. Navigating to the Bands page and hovering over the band to view the band level confidence tool tip.
  2. Navigating to the Bands page and selecting a role within the bands table to launch the Job Breakdown Modal.

Band Level Details

Band level details provide complete benchmark information all in one place. This includes percentile data for salary and equity, benchmark confidence metrics, and additional details about each job area/level.

  1. Band overview: High-level details for the selected band (area x level).
  2. Compensation breakdown: Visual breakdown of the salary + equity compensation for the selected band across all target percentiles.
  3. Benchmark Confidence: Visualization of Carta’s confidence in the underlying sample size, recency, and goodness of fit for a given benchmark.
  4. Band level details: Explainers covering the roles and responsibilities for the currently selected band (job area x level).

How do I enable Insights for Carta Total Compensation?

In order to access the new Insights functionality in Carta Total Compensation, you must first ensure your account is updated to the 2022-07-12 benchmarks. 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 will add the ability to define variable compensation programs and assign them to employees

83(b) Automated Submission

What’s New

Users that choose to early-exercise will now be able to submit an 83(b) form automatically to the IRS while exercising. Furthermore, users can now update their SSN, digitally sign the 83(b) form, and review personal information during the exercise request. In addition, users now have an improved UI to access the PDF and tracking number of their 83(b) form on the 83(b) Elections tab on the Option Grant modal.

Who this affects

Any US-based users with early exercisable option grants, and ACH eligible who choose to early-exercise through Carta. 

How it works

83(b) Automated Submission Option During Exercise Request

The 83(b) Automated Submission option will be available during an exercise submission. Users will be able to choose between performing an Automated 83(b) Submission or a Manual 83(b) submission (if the user selects to submit their 83(b) form manually, they still have the option to utilize the automated submission feature through the Option grant modal as long as the current date has not exceeded 25 days from the exercise date).  







Figure 1: On the Review Tax page, users now are given the option to automatically submit an 83(b) form or manually submit the form; If the user chooses to submit the automated 83(b) form, they can add/update their SSN directly






Figure 2: Updated Sign and Submit modal which includes an Automated 83(b) Submission Agreement section signed via digital signature.


Figure 3: Updated Congratulations page stating that the 83(b) form is being sent to the IRS. 



Figure 4: 83(b) elections tab on the Option Grant modal to view the USPS tracking number and the submitted 83(b) form.  


Included Personal Information

To submit an automated 83(b) submission, a Social Security Number (SSN) is required by the IRS to properly verify the identity of the user. If the user’s SSN isn’t filled in the Account settings, users have the ability to add and confirm their SSN when selecting their submission method. Otherwise, when users navigate to the Review Exercise page, the automated submission will pull the user’s Name, SSN, and Address directly from the Account settings.


Digital Signature

On the Sign and Submit modal (Figure 2), users agree to automatically submit the 83(b) form by signing the agreement via digital signature. The digital signature is added directly into the PDF of the 83(b) form.

Status of submission 

The 83(b) form PDF and Tracking number will be provided and displayed in the Option grant modal on the 83(b) Elections tab. The user will be able to track and check the status of their 83(b) Automated Submission.

83(b) Manual Submissions

Manual 83(b) Submissions UI has been improved on the 83(b) Elections tab providing users with an 83(b) form to print and sign which is to be mailed manually by the user. To complete their manual submission, users will be required to upload their signed copy of the form in addition to the date that the 83(b) form was sent to the IRS on Carta. Further, users may choose to submit an automated submission on the 83(b) Elections tab.



FAQ

1. Can I still use the previous workflow for 83(b) Submission?

Yes! If you would prefer to file your 83(b) form manually, you still have the ability to do so! During the exercise workflow, you may select “Submit an 83(b) form later” as your submission method, and you’ll have the option to download and print an 83(b) form from the 83(b) Elections tab on the Option grant modal.


2. What happens if my exercise gets stuck or canceled?

If you select automated submission of your 83(b) election, it will be initiated immediately after you finish submitting your exercise.  If your exercise gets canceled, you should consult with your legal and tax advisors on what to do with your filed 83(b) election form.

3. How will I know that the IRS has received my automated submission? Will I be able to closely follow the progress of the 83(b) submission?

You can navigate to the 83(b) elections tab on the Option grant modal to verify the status of the 83(b) form using the tracking number provided by USPS to follow the progression of your 83(b) submission. Status updates are available as soon as the package is delivered to the USPS.

We highly recommend printing and storing the online USPS confirmation as this information is only available for a limited amount of time. 



Additional Resources

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