Carta Total Comp 

Carta cap table customers can now access our benchmarking and planning platform to streamline their compensation processes and compensate with confidence.

What’s new?

Workflow tools built on top of the world’s largest equity data set and powerful HR integrations to help you make better compensation decisions faster. Carta Total Comp customers are now able to access the following compensation benchmarking and planning features:

• Automated Leveling - Map each of your employees into an area, track and level using Carta’s universal leveling framework.
• Scorecard - Summarizes employee salary and equity information from your HRIS and cap table to give a holistic overview of your organization’s total compensation.
• Bands - Automatically generate equity and salary bands for any role by filtering for job area, track and location.  
• HRIS Integration -  Integrate instantly with any of the most common HRIS systems.
• Coming Soon - Plan -  Easily build, manage and apply your compensation strategy across your employee base.

Get a pulse on your org through your company Scorecard tab

Benchmark any role in the Bands tab

Availability

• If you are interested in learning more about Carta Total Comp, please reach out to your Carta Customer Success Manager or sign up here.
• You must be a Carta cap table customer to sign up for Carta Total Comp.

Additional Resources 

• Carta Total Comp announcement from our Chief Product Officer, Heidi Johnson. Link to Blog Post.

We know how important Carta is in helping fund managers manage and track the performance of their funds. This month we've add a host of new features to help fund managers get and understand the metrics they need about their funds. 

Here's whats new:

1. New fund performance page

• New table view with an option to 'switch to chart view'
• Added metrics definitions and explainer tool tips
• Period selector to allow you to easily select ‘end of’ last year, quarter, or month.
• Traceback for very metric so you can to view the underlying source data
• New API using Carta General Ledger for all contributions and distributions data.

Example of new Fund Performance page:

Example of traceback of TVPI metric as of 12/31/2020:

2. New Excel export:

We've added a new export on the page that includes all the metrics and details about the underlying data.

3. Support for parallel entities:

We've also added support for parallel entities (or fund families). You will be able to see all the above features at a consolidated level.

Where to find: Log in to Carta > Select a fund within your investment firm > Select the Fund performance tab

Timing: Rolled out to funds using our Fund Administration services on April 16, 2021.

Audience: General Partners, CFOs, Investment teams, Limited Partners.

Fund managers are flooded with troves of documents for every investment their fund's make. These documents house vital terms that need to be quickly referenced during deal negotiations and potential exits to answer questions like- Who has blocking rights? Keeping these documents organized and easily accessible is also key to running a stress free audit that institutional LPs can have confidence in. 

What’s New 

For our early access group, funds using the Carta General Ledger can now see their deal documents directly on their realtime SOI. For each portfolio company, easily access documents by asset including both new investments and the supporting documentation for subsequent valuation updates. 

How it works

1. Work with the Carta team to capture all deal documents

2. Click through any asset on the realtime SOI

3. See all associated deal documents and valuation support

4. View or download the actual documents to verify any needed terms. 

5. Have your Carta Fund Administrator grant your auditor access to the Carta General Ledger so they can access any documentation/support the same way.

Stay tuned as we roll this out to a bigger audience and introduce more tools to make keeping track of deal terms across a portfolio even easier. Reach out to your account manager if you would like to be considered for early access. 

Timing: Rolled out to Carta Fund Administration early access clients April 2021

Audience: CFO's, Fund Managers, Auditors, General Partners

What’s changing?

The public reporting experience has been enhanced and is now more consistent with Carta’s private markets reporting. Public company administrators can now more easily run reports in Carta. 

Improvements include:

• Reports are now organized into folders by category
• Reports are searchable
• Certain reports that were previously run in areas outside of the reporting tab are now organized into the reporting experience (example: RSU settlement report)

A Virtual Tour is available via the Start Virtual Tour link at the top left corner of the reporting experience. For a limited time, the legacy reporting page can be visited via the Take me Back button at the top of the page.

Who this affects

Public company administrators

Timing

This feature will be available on 4/19/2021.

What's changing?

Companies can now quickly get the information they need and reduce room for error through our new report builder template. This ‘stakeholder ledger’ enables admins to pull information on stakeholders, cap table, and vesting information in a single report.

Users no longer need to combine multiple reports or run offline calculations to view vested/unvested, forfeited, excised, cost center, employee ID, and relationship in one place.

To create a Stakeholder Aggregate report on Report Builder

Click ‘Create a custom report’ on the Capitalization > Reporting page, and select ‘Stakeholder ledger’.

This will open up the Report Builder interface. From here, you can select any of the available columns. Note that not all columns are available, as some cannot be aggregated at the stakeholder level.

What’s next?

During Q2 we will be adding additional columns, starting with fully diluted ownership. We will also be adding additional filtering options, starting with specific equity plans and share classes.

Non-US optionholders at US private companies will now be able to send exercise payments to Carta from 3rd party money transfer providers such as Wise(formerly known as TransferWise), Revolut, Xoom, Remitly etc.

We are giving optionholders the flexibility to either send payments through 3rd party money transfer providers or through wires initiated from banking financial institution.

Who this affects:

Non-US optionholders at US companies, when international exercise via wire feature is enabled by their company

What was the problem:

When we launched the ability for optionholders to wire exercise funds to support in-app money movement, optionholders were hit with bank fees, including intermediary fees, which led to holders underfunding or overfunding their exercises.

Sometimes, optionholders had to walk to a bank to wire the exercise funds as some of the banking financial institutions did not support online wire transfer.

What’s new: 

Optionholders can use the same payment instructions provided after an exercise is approved and send funds via 3rd party money transfer providers. 

Ensure that under "Recipient gets"  in 3rd party money transfer providers you input exact USD funds required for exercise payments. If amount required for exercise does not match with received funds, exercise will be underfunded and we will require remaining funds to complete the exercise.

Once Carta receives exact funds, we initiate outgoing payment to the company. After payment to the Company is succeeded, we generate Certificate.

This feature is an additional payment option that Carta is providing for our customers

LIVE for companies that have exercising and settled via Carta feature turned on.

If you would like to have this feature added, contact Carta support!

Users viewing the "Vesting schedule" tab in the security details modal will now see a new column in the "Progress" section labeled "Status" under which progress bars appear next to each vesting tranche that indicate the vesting and/or exercise status for each vesting tranche.

Who this affects

All users in all companies with securities that have vesting schedules

What's new

For security holders and administrators viewing individual security details, click on the "Vesting schedule" tab to see the new status bars (see red boxes below):

Depending on the status of a security's vesting and exercise status, you'll see the following colors:

• Gray: unvested tranche
• Light blue: vested tranche
• Dark blue: exercised tranche

Previously, if there was an exercise for part of a vesting tranche, you'd either see the row colored in gray if the tranche was unvested, or you'd see the row colored in blue if the tranche was vested - this was confusing since neither of these results were technically accurate.

Now, if a vested tranche is partially exercised, you'll see the dark blue exercise color overlaid on the light blue vested color (show below). If an unvested tranche is partially exercised in the case of an early exercisable option grant, you'll see the dark blue exercise color overlaid on the gray unvested color.

Timing

Live now!

Users can now access their exercise history across their entire portfolio in one spot. This makes it easy to review their activities over a defined time frame - like a tax year! 

Who this affects:

• Shareholders who have exercised a private company option grant

What's new:

• Find all exercise details in one location - Within Exercise History you can see a report of all your exercises across your entire portfolio. This makes it easier to get an at-a-glance view of your exercises activity.
  
   
• Filter for specific companies or date range - Narrow your report by company or date range to customize your report.
  
  
  
  
  
• Customize your report - Choose which fields are relevant for a given report.
  
  
  
  
• Export your report - Download and view your report in a portable CSV format.
  
  
  
  
  

Timing:

• Released March 2021
• Support for all public company exercises coming Q2 2021

Where to find Exercise History

• When viewing your portfolio, select the Account drop down menu to find Exercise History
  
  

Who this affects:

Public company stakeholders

What's new:

Public company stakeholder portfolios now feature share lot details and transaction details tabs, capturing information about shares that are held and shares that have been sold.

Share lot details tab:

The Share lot details tab shows the stakeholder’s share lots. Stakeholders can view their acquisition date and cost basis for all share lots, as well as the source of the shares. For share lots linked to ISO awards or employee stock purchase plans, this view shows a qualifying date capturing the earliest date that the share lot can be sold in a qualifying disposition. The FMV at acquisition is also captured in the table to facilitate tax analysis.

Transaction details:

The second tab features transaction details for any sold lots. Stakeholders can view their sold share lots and their related cost basis and acquisition dates. This view also shows the disposition type if the share lot is linked to an ISO exercise or ESPP purchase. The view captures the proceeds for each liquidated share lot.

For private companies, Carta will now generate the resulting certificate after the option exercise funds are sent to the company and have succeeded (may take 1-2 business days).

Who this affects:

Private companies: Admins and shareholders

What was the problem:

Previously, resulting certificates were generated after Carta confirmed the funds from stakeholder, but before the funds were sent to the Company. This created reconciliation issues for the company as they could not verify if funds were sent to the company before issuing the certificate.

What’s new: 

We have now updated the flow to generate the certificate after funds are sent to the company, which may take 1-2 business days for the company to receive the funds.