Set up and send your first Offer Letter with a few clicks

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.

RSU Settlement for Private Companies

What's new?

Carta now helps private company administrators coordinate the settlement of Restricted Stock Units (RSUs). The end-to-end offering allows an Issuer to:

  • configure and schedule a RSU Settlement;
  • provide RSU holders with an election period to identify how they want to pay the tax withholding obligation associated with the upcoming settlement;
  • collect any cash payments from RSU holders; and
  • automatically update the cap table at settlement.

During the election period, RSU holders are invited to access a workflow to view their vested RSUs along with the tax withholding amounts due at settlement. They have the flexibility to meet their tax obligation by electing to net-settle, pay the full amount in cash, or use a combination of surrendered shares and cash. 

This offering helps facilitate the RSU settlement process from setup to share delivery for private Issuers that award RSUs under their equity compensation plans.

How does it work?

Issuers

Private company administrators can go through a four-step process to configure an upcoming RSU Settlement with Carta Liquidity. Issuers can:

  • set the parameters of the settlement (e.g., FMV, election timing, settlement date); 
  • view and confirm the RSUs that will be included based on the vesting end date (i.e., record date); and 
  • view and confirm tax withholding amounts associated with the settlement. 

Issuers can set rates to use when calculating tax withholdings owed based on each RSU holder’s tax jurisdiction(s). Carta Liquidity’s integration with Carta’s equity management platform and tax engine eliminates the need for the administrator to pull and sort cap table information manually or calculate tax withholdings for each RSU holder. Alternatively, Issuer’s can provide tax withholding amounts calculated by their HRIS provider for use in the settlement.


RSU holders

When the administrators invite RSU holders to submit their elections, RSU holders will be able to view which of their RSUs will be settled and the tax withholding amount due per security. In addition, individuals will identify how they would like to satisfy the tax withholding amount owed through a self-service election workflow. 


The three tax withholding payment options include:  

  • Share withholding (i.e., net settlement) - The entire tax withholding amount is paid by surrendering a portion of shares from the vested RSUs released for settlement. The net amount of shares after withholding will be delivered to a RSU holder at settlement. This is the default option.
  • Cash payment - The entire tax withholding amount is paid by a RSU holder in cash (only USD is accepted). RSU holders are required to fund their brokerage account in order to make this election.
  • Share and cash payment - Each RSU holder identifies the mix of cash and shares that will be used to pay the taxes due at settlement, providing them more flexibility. RSU holders are required to fund their brokerage account in order to make this election.

For any cash elections, RSU holders are instructed to transfer the necessary cash to their Carta Liquidity brokerage account*. RSU holders are able to modify their election until the end of the election period. 

At settlement, Carta Liquidity’s integration with Carta’s equity management platform automatically updates an Issuer’s cap table to reflect the shares of stock delivered to RSU holders, and any cash payments received to cover applicable tax obligations will be transferred automatically to the Issuer’s brokerage account. RSU holders will then receive their resulting equity from the Issuer in their Carta accounts. In addition, Carta Liquidity will provide a record of the RSU settlement to both the Issuer and RSU holders. 

Run regular RSU settlement processes with automatic cap table updates and tax withholding calculations, saving your team time and resources 

The RSU Settlement offering will:

  • Reduce the manual administrative work required to set up a regular cadence of RSU settlement through equity management and tax engine integrations
  • Provide RSU holders flexibility to choose how they would like to meet their tax withholding obligations through a self-service election workflow
  • Provide optionality to RSU holders to pay out of pocket for the amount they feel comfortable paying.

Start managing RSU Settlements on Carta!

Reach out to company_coverage@cartacapitalmarkets.com to speak with your relationship manager to turn on this feature. 

*Note: Brokerage accounts and other brokerage services are offered through Carta Capital Markets, LLC (Member: FINRA/SIPC)


Share Offer Letters via a link

What’s new

CTC customers can now send Offer Letters to candidates with a simple URL link if they are not using Carta’s candidate acceptance flow. This will allow companies to send Offer Letters to candidates via an existing email thread with a candidate or additional signatory tool of their choosing. 

Get started 

How do I send an offer letter via link?

  1. Navigate to the Offer Letters page
  2. Draft, preview, and save an offer letter by clicking “Create new offer”.

 3. Once you have saved your offer letter, click “Copy link”, the URL can be pasted and shared to grant access to the published Offer Letter.

 

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.

Send an Offer Letter directly from the Bands page

What’s new

All CTC customers can now save time by seamlessly previewing and sending Offer Letters straight from the Bands tab. 

  • Companies who have configured the required settings for Offer Letters send Offer Letters faster with pre-filled job and compensation package details .
  • For companies who have not configured Offer Letter settings, a preview of an Offer Letter with a recommended compensation package will be provided. Admins can always quickly configure Offer Letters settings in the Settings tab. 

Get started 

How do I send an Offer Letter from the Bands page?

Here’s how to get started: 

1. Navigate to the Bands page.




2. Click on the Job Breakdown for a particular Role.


3. Click “Create offer” to be shown a preview offer letter with a recommended compensation package based on your company’s Plan information, specific for that Role.


4. Companies who have already configured the required Offer Letter settings will be redirected to the “Create New Offer” page with pre-filled salary and Role information.


Companies who have not configured the required Offer Letter settings will be shown a preview of an Offer Letter for the specific Role. Admins can click “Send your first offer” to be guided on how to configure the required Offer Letter settings before sending your company’s first Carta Offer Letter.

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.

New job specializations, quarterly refresh of equity benchmarks, and benchmark version selector

What’s new?

We have 3 exciting updates now available in Carta Total Comp. You can now use: 

  • Refreshed equity benchmarks
  • Benchmarks for 4 new specializations 
  • Benchmark version selector (Bands page)

View new job area specializations

Users will now be able to view and use new salary and equity benchmarks for the following specializations:

  • Office Management (within Administration) 
  • Recruiting (within HR) 
  • Digital Marketing (within Marketing)
  • Partnerships (within Strategy)

Note: Our sample size for new specializations  can be smaller than job area benchmarks, which could result in data volatility as we continue to update the data and grow our overall sample size. 

How do I see benchmarks for the additional specializations?

You can view benchmarks for the Digital Marketing specialization by:

  1. Visiting the Bands page and selecting “Marketing” under Area. Once the marketing job area is selected, you can select the digital marketing specializations by selecting the Specialization dropdown.

  1. This will allow you to view salary/equity bands for levels 1 - 7 for the Digital Marketing specialization.  
  2. The above process can be followed for each of the new specializations.

How do benchmarks for the additional 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 Administrative (Office Management), HR (Recruiting), Marketing (Digital Marketing), Strategy (Partnerships) specializations will now be calculated using the target compensation for the specialization not the job area.

Use refreshed equity benchmarks version 2022-12-20

What changes can I expect from these benchmarks?

We have updated equity benchmarks for all job areas and specializations. These benchmarks are a reflection of the current market, characterized by limited fundraising, a slowdown in hiring, and a potential decrease in some company valuations. As a result, these benchmarks show decreases in target equity compensation. This is due to having a higher concentration in earlier stage valuations and more junior level roles. Equity benchmarks across mid-to-late stage companies and more senior level roles are flat to slightly above our previous benchmarks. Looking forward to 2023, assuming the overall environment remains the same, we would anticipate continued volatility and potential decreases in equity benchmarks.

How do I update my plan to use the new benchmarks version?

You can update your compensation plan to use the latest benchmark versions in one of two ways: 

  1. Navigating to  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.

View the current market without affecting your Scorecard

Carta is focused on providing your business with the latest market compensation data. We understand that your plan is tied to a point-in-time, making your benchmark version an integral part of your compensation philosophy. We also understand that viewing future versions can help in understanding the current market, headcount planning, and more. Carta is excited to announce that you can now access the latest compensation benchmarks without updating your Plan. 

The Bands page will now default to Carta Total Compensation’s latest benchmarks. However, regardless of what is selected on the Bands page, the Scorecard will remain associated with your selected Plan’s benchmark. Users can easily toggle between the latest benchmarks and those associated with their compensation plan using the Benchmark version dropdown. How do I toggle the Bands page to display the benchmark associated with my Plan?

  1. Visit the Bands page and click the Benchmark version dropdown. 
  2. Select “Default Plan” to view the Bands page using the benchmark associated with your compensation plan. 

What’s next?

Carta Total Comp is working on international geo-adjustments.

Show employees their bonus programs in their Total Rewards Statement

What’s new

Variable Compensation Programs are now automatically reflected in an employee’s Total Rewards Statements for all Carta Total Compensation customers. 

Give employees complete visibility into their total compensation 

Show employees all the bonus programs that have been assigned to them in their Total Rewards Statement.  

  1. Enable employees to see a complete picture of their compensation, including any variable programs that you’ve assigned to them 
  2. Save time with variable compensation programs automatically attached to your employees’ Total Rewards statements, with no additional manual work on your end 

Get started 

How do I create a Variable Compensation Program and reflect it in my employees’ Total Rewards Statement?

You can get started with VCP in seconds. Here’s how to get started: 

  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.
  4. Once you have created a variable compensation program(s) and assigned those to the correct employees, they will automatically be shown in an employee’s Total Rewards Statement. 

Learn more

Visit the Carta Total Rewards resource center for more details.

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

Dilution Report (Public Markets)

What’s new? 

Public company administrators can now run a Dilution Report to help them calculate their company’s diluted earnings per share (EPS). The Dilution Report will contain the simple and weighted average of common stock outstanding (WASO), the number of incremental shares, the average trading price for common shares, and supporting information for all calculations. This feature will simplify diluted EPS calculations and help public companies meet their diluted EPS reporting requirement for their quarterly income statements.  

How does it work?

To calculate diluted EPS, an Issuer will need the WASO and shares outstanding (new common shares issued at conversion - repurchased shares) for the reporting period in question. The Issuer will calculate its own net income, preferred dividends, and after-tax cost of interest. 

Note: * denotes fields not provided by Carta

After logging into their Carta accounts, public company administrators can navigate to the Financial Reporting section of their profile to generate a new Dilution Report for a desired reporting period. Dilution reports are only available for periods that begin on or after an Issuer’s IPO date.


After the report is generated, the administrator can download an Excel file which includes calculated values for simple and weighted average of common shares outstanding, the number of incremental shares, the average trading price for common shares, and supporting information. The file also includes an “Errors” tab to flag any data issues that should be resolved to produce an accurate report.

Simplify diluted earnings per share calculations to meet quarterly reporting requirements for public companies

With the Dilution Report, public company administrators can:

  • Save time and reduce the work required to calculate WASO and shares outstanding to meet public company reporting requirements;
  • Customize the diluted EPS reporting period as needed;
  • Use Carta’s calculations to verify their own calculations as a sanity check; and
  • Understand if there are any data discrepancies that need to be addressed. 


Start using the Dilution Report now!

Do you need additional help in using the Dilution Report? Refer to this support article for more information. For further assistance, reach out to Carta’s Financial Reporting team at 718@carta.com

Land top talent by giving candidates optionality during negotiations

What’s new

Flexible Offer Letters are now available to all Carta Total Compensation customers. 

 

Who this affects

All Carta Total Compensation customers.

 

Let candidates choose a compensation breakdown that’s best for them.

Flexible Offer Letters adds optionality to our Better Offer Letter. Now, you can:

  • Offer up to three different compensation packages to a candidate, setting each with different amounts of  cash, equity, and variable compensation
  • Empower candidates to visualize their future at your company, with first year comparisons and projected compensation charts 
  • Do it all in an integrated, complete platform with CTC’s acceptance flow and Carta’s complete platform 

 

How it works

Start using Flexible Offer Letters today. 

 

Offer Letter Creation Form

When creating an offer letter, you can add up to three  packages in the Compensation section.

Candidate Experience

The candidate will be able to select which package is represented in the First year compensation summary.

The candidate will be able to compare each package against each other in the Compensation Projection chart, too.

For companies using Carta’s acceptance flow, candidates will be prompted to confirm which compensation package they would like to accept in a modal prior to agreeing to the offer.

Companies that are not using Carta’s acceptance flow in the offer letter can correspond with candidates offline to determine the offer letter package the candidate would like to accept.

 

Have additional questions?

Check out our Support Center or reach out to your Customer Success Manager.



Quarterly Salary + Total Cash Benchmark Refresh

What’s new?

Benchmarks version 2022-11-10

What changes can I expect from these benchmarks?

We have updated salary benchmarks for all job areas and specializations. We have also updated total cash compensation benchmarks for sales roles. Salary benchmark changes in this release reflect a slowing market for talent among startups. Most job areas saw little no change versus our last release, with increases/decreases of less than 1%. We saw most of the volatility in this release within engineering specializations, which have smaller sample sizes than the broader job area. Most notably, Mobile, QA, and Web Engineering all saw large increases across peer groups and levels, bringing pay for the various engineering specializations into closer alignment.

What were the largest areas of movement from these benchmarks?

IT, Sales, and Administration roles saw the largest increases ranging from 2%-5%, though the increases to IT and Administration roles are largely due to sample size changes. Support roles saw the largest decrease (4%). All other job areas changed by less than 1%.

Increases:

  • IT
  • Sales
  • Administration

Decreases:

  • Support

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 on updates and improvements to our equity benchmarks in order to reflect the current labor market.

Communication Center (Public Markets)

What's new?

Public company administrators can now utilize the brand new Communication Center to send secure communications to stakeholders in the company’s equity plan managed on Carta. This feature allows public companies to create and send timely communications to equity plan members in bulk. Recipients can be selected by relationship type and other filters to further customize the message’s distribution list. In addition, the Communication Center dashboard allows company administrators to view sent and drafted messages, and see which stakeholders have viewed a communication. 

Examples of communications include, but are not limited to: instructions on how stakeholders can manage their equity at Carta, employee stock purchase plan (ESPP) offerings, upcoming trading windows, and updated disclosures.

How does this work?

Permissioned company administrators may access the Communication Center. Before sending any messages, company administrators should check that the company’s Stakeholder Ledger is up-to-date to ensure messages are sent to the correct individuals. At minimum, an individual’s Relationship, Contact Email, and Officer Code (if applicable) should be updated.

Once these steps are completed, company administrators can proceed to the Communication Center dashboard (found under the Employee tab of the main navigation toolbar).

Here, company administrators with Company Editor or Legal Administrator roles can compose, review, and send secure messages with or without PDF attachments. They can also filter for previously sent and drafted messages. 

When choosing who to send a communication to, the Company Editor or Legal Administrator may send bulk messages by Relationship Type (e.g., Employee, Ex-Employee, Advisor), and then also filter recipient lists by Officer Code, Trading Restrictions, the employee stock purchasing plan (ESPP) an individual is a member of and associated status, or the outstanding security type(s) held by each stakeholder. 

Company administrators will have the opportunity to review the communication, save it as a draft, remove individuals as needed, and reconfirm the recipients before sending the message. 

After sending the message, stakeholders will receive an email notification that they received the secure message. They must log in to their Carta accounts to view the message, and messages on the Carta platform may not be forwarded to an external email account. 

Company administrators who can view the Communication Center dashboard can monitor which stakeholders have viewed the communication.  

Send secure messages and archive them safely in a centralized location with Carta’s Communication Center. 

The Communication Center allows public company administrators to: 

  • Craft and send secure communications with or without PDF attachments in bulk to stakeholders within their public equity plans; 
  • Easily create recipient lists by relationship type and other optional filters, removing the need to maintain multiple distribution lists manually;
  • Quickly filter recipient lists of sent communications by who has or has not viewed the communication; and
  • Review and archive communications to remain compliant with recordkeeping and reporting laws; 

Start using the Communication Center now!

Need help with the Communication Center? Refer to this support article for detailed instructions on how to manage, view, and send out your next secure message. 

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