Carta Total Comp Updates: Scorecard Export, Next Twelve Months Vesting and More

Check out the exciting new updates we’ve made to Bands, Scorecard and Admin pages 

Next Twelve Months (NTM) Equity Ratio

Equity Ratio is now being calculated using Next Twelve Months (NTM) equity rather than Total Equity granted to the employee. The new formula for Equity Ratio is as follows: 

An employee’s next twelve months (NTM) equity divided by the target annual equity for a new hire today.

Why did we make this change? 

The Carta Total Comp Scorecard is designed to provide a clear view of the compensation health of your business. In order to build a score that better highlights attrition risk, we’ve changed the calculation for equity ratio to be based on unvested equity that will vest in the next twelve months. 

Employees compensated below market rate are at risk of attrition, as they would be paid more in a new role than if they were to stay in their current position. 

Vested equity does not incentivize employees, because it is already earned, and therefore does not help drive retention; put another way, vested equity is already “in the bank.” Calculating a health score that includes vested equity could lead to overlooking employees who are mostly vested and therefore at risk of going to work elsewhere. 

The additional benefit of NTM is that it allows you to compare equity compensation on the same annualized timeframe as salary. 

Additional Details

While Equity Ratio will be calculated by using NTM going forward, we will continue to show Total Equity on the company and employee Scorecard. 

Scorecard Export

You can now easily download a CSV of the entire scorecard by clicking on the “Export” button. The CSV will contain all of the available columns, regardless of whether they are enabled in the column selector.    

Admin Page

Review and modify employee details from the new Admin Settings page. This page has a complete view of all employees synced from the HRIS and cap table. 

What’s changing?

Navigate to the Admins page from the Carta Total Comp top navigation bar. From there you can access the “Roles and permissions” tab along with the “Employees” tab

New Bands Version

You can now see the date of the most recent Benchmark version in the Plan and Bands page. With the Preview plan feature, you can review the impact that updated benchmarking data has on the Scorecard prior to applying the new Plan. 

Why did we make this change? 

When benchmarking data is current, it better enables you to be competitive in today's market with the offers you take to candidates and employees. 

Job Area Descriptions and Example Job Titles

Our Roles and Levels are now defined in-app. 

Why is this important?

Carta's leveling framework provides a foundation for your company to provide career pathing for employees and to review pay fairness for each job area and level. Without consistent leveling, companies can not accurately compare their employees to market rate data, limiting their ability to effectively hire and retain talent. 

To help our customers ensure accurate and consistent leveling, we are now providing further descriptions for each job area we support, so users can make more informed leveling decisions based on commonly used job titles.

What’s changing?

We have added a “Learn more” link in the "Example title" column in the "Bands" tab. This link will launch a modal where you can see sample job titles and descriptions for roles in each job area.