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

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

Improvements to Engineering Specializations

Benchmarks 2022-06-16

What changes can I expect from these benchmarks?

This version resolves an issue with level progression in the benchmark version released on 2022-06-09. If you did not update to the 2022-06-09 benchmarks you were not impacted by this bug. There are no other changes to benchmarks or specializations in this release.

Carta will now provide salary + equity benchmarks for the following engineering specializations:

  • AI and Machine Learning
  • Hardware
  • Mobile
  • Web Engineering

In addition, benchmarks data has been refreshed for the following existing engineering specializations:

  • DevOps and Site Reliability
  • Quality Assurance
  • UX/Frontend

Note that for all of our specializations the sample size is smaller than job area benchmarks which could result in data volatility as we continue to update the data and grow our overall sample size.

What were the largest areas of movement from these benchmarks?

For existing specializations, salaries increased an average of approximately 3% compared to the previous version of the benchmarks. The largest increases are generally concentrated at more senior levels and in higher valuation peer groups. We also observed some decreases in the salary benchmarks, mostly at levels 1 and 2 at valuations below $50 million. While some of these changes are driven by market dynamics, some of the change is driven by the limited sample size for these roles. Equity benchmarks also reflect a mix of increases and decreases compared to the last benchmark version which are also being driven by a combination of market dynamics and sample size.

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 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.

How can I assign an employee to a specialization?

You can assign an employee to an engineering specialization by: 

  1. Visiting the Employee Scorecard page for a particular employee and selecting “Edit” next to the employee’s role and then selecting “Job area and level” on the Update details page.

  1. Select the “Specialization” dropdown to assign an employee to one of the listed specializations.

Note: specialization benchmarks are currently limited to AI and Machine Learning. DevOps + Site Reliability, Hardware, Mobile, Quality Assurance, UX/Frontend, and Web Engineering for the engineering job area.

How do I see benchmarks for engineering specializations?

You can view benchmarks for engineering specializations by:

  1. Visiting the Bands page and selecting “Engineering” under Area. Once the engineering job area is selected, you can change the engineering specializations by selecting the Specialization dropdown.


How do engineering specializations 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 AI and Machine Learning, Hardware, Mobile, and Web Engineering specializations will now be calculated using the target compensation for the specializations.

What’s next?

Additional functionality around data transparency that will provide users insight into the underlying data used to generate benchmarks in Carta Total Compensation.

New Employee Scorecard & Engineering Specializations

What’s new?

New Employee Scorecard

We’ve restructured the Employee Scorecard to increase legibility and improve comprehension of your employee’s role information and compensation details. 

The updated Employee Scorecard is broken down into logical groupings of information to help you quickly identify important information.

  1. Employee Overview
  2. Annual Compensation Breakdown
  3. Equity Breakdown

Engineering Specializations Benchmarks 2022-06-09

What changes can I expect from these benchmarks?

Carta will now provide salary + equity benchmarks for the following engineering specializations:

  • AI and Machine Learning
  • Hardware
  • Mobile
  • Web Engineering

In addition, benchmarks data has been refreshed for the following existing engineering specializations:

  • DevOps and Site Reliability
  • Quality Assurance
  • UX/Frontend

Note that for all of our specializations the sample size is smaller than job area benchmarks which could result in data volatility as we continue to update the data and grow our overall sample size.

What were the largest areas of movement from these benchmarks?

For existing specializations, salaries increased an average of approximately 3% compared to the previous version of the benchmarks. The largest increases are generally concentrated at more senior levels and in higher valuation peer groups. We also observed some decreases in the salary benchmarks, mostly at levels 1 and 2 at valuations below $50 million. While some of these changes are driven by market dynamics, some of the change is driven by the limited sample size for these roles. Equity benchmarks also reflect a mix of increases and decreases compared to the last benchmark version which are also being driven by a combination of market dynamics and sample size.

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 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.

How can I assign an employee to a specialization?

You can assign an employee to an engineering specialization by: 

  1. Visiting the Employee Scorecard page for a particular employee and selecting “Edit” next to the employee’s role and then selecting “Job area and level” on the Update details page.

  1. Select the “Specialization” dropdown to assign an employee to one of the listed specializations.

Note: specialization benchmarks are currently limited to AI and Machine Learning. DevOps + Site Reliability, Hardware, Mobile, Quality Assurance, UX/Frontend, and Web Engineering for the engineering job area.

How do I see benchmarks for engineering specializations?

You can view benchmarks for engineering specializations by:

  1. Visiting the Bands page and selecting “Engineering” under Area. Once the engineering job area is selected, you can change the engineering specializations by selecting the Specialization dropdown.


How do engineering specializations 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 AI and Machine Learning, Hardware, Mobile, and Web Engineering specializations will now be calculated using the target compensation for the specializations.

What’s next?

Additional functionality around data transparency that will provide users insight into the underlying data used to generate benchmarks in Carta Total Compensation.

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