Post-termination exercise period (PTEP) refers to the amount of time an option holder has after termination to exercise their options. It is now possible to change the PTEP to give employees more or less time to exercise. This can happen on a one-off basis, or across many grants at once. 

What is new with this release?

It is now possible to enter an effective date for the post-termination exercise period in Carta. This is needed to track changes over time and to have more accurate financial reporting.

Modifying the PTEP 

The PTEP can be modified for a specific grant by selecting ‘Modify post-termination period’.

The original grant and the current PTEP values are visible on the left side of the ‘Modify port-termination exercise period screen’. 

Select ‘Add Modification’, then enter an effective date for this change, select a modification reason, select the new modification details, then select ‘Save this modification’.

It is also possible to update the PTEP across multiple grants at once. 

More information is available in this support article. 

Note: Changing the post-termination exercise periods can have tax and accounting consequences and may need board approval, so consult your legal administrators before making any changes.

Users: Option holders of public companies
Platform: Web (iOS and Android coming soon)

With an objective to unify the cash exercising experience between private and public companies, we've enhanced the Public "Cash" Exercising flow on Web to make the steps more seamless, intuitive and easy to follow. Implementing these changes to the exercising workflow allows users to review all the important details relating to their option grant exercise in a step-by-step manner, eliminating confusion about tax withholdings and allows them to better understand the stages of their exercise.

While our previous Cash Exercising workflow for public companies got us some great mileage, our processes and their caveats have evolved, which called for a cleaner, simpler and an overall better user experience. Below are some of the highlights that the new Cash Exercising workflow will introduce:

1. Step-by-step procedure: Intuitive and easy to follow, allowing the user to fully understand the process
2. Improved tax estimation/information: Targeted tax withholdings information provided to user with respect to the option grant type being exercised
3. Cleaner UI: Revamped headings, body text, call to action, helpful support links and more!

Get the transparency you need to manage ISO/NSO splits with the new ISO 100K dashboard in Carta.

Who this affects

All Carta customers can now access the dashboard under Compliance > ISO 100K.

What's new

The 100K rule for ISOs has been a historically opaque concept in Carta - customers and their legal counsel have often found it difficult to understand how the application of the rule results in the specific bifurcation of ISO vs NSO shares in a particular option grant.

The new ISO 100K dashboard brings a new level of transparency to the way in which ISO options are bifurcated according to Carta's automatic application of the 100K rules. For specific transactions and amendments that fall outside the purview of Carta's automatic bifurcation estimates, customers and their legal counsel can request access to the dashboard's grant editor feature, which allows legal administrators to change the ISO/NSO split estimated by Carta.

Last thing to mention: we worked closely with Orrick (one of Carta's law firm partners) to make sure we were solving this problem in a way that allowed our law firm partners to better support our customers. You can read more about that here on Carta's blog.

Timing

Available now to all Carta customers.

• Total investment count
• Fully realized investment count
• Partially realized investment count
• Unrealized investment count

Timing: Rolled out to funds using our Fund Administration services on May 21, 2021.

Audience: General Partners, CFOs, Investment teams.

With the new Plans page, you can now craft and manage your compensation plan to meet the needs of a changing workforce. With Plans you can:

1. Review your active plan or create a new plan.
2. Edit and preview draft plans.
3. View your plan history.

Before making modifications to your plan, preview will allow you to see how a change in peer group, band ranges, or location strategy could impact your employees' compensation targets. 

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.

• Called capital
• Uncalled capital
• Percent of capital called
• Prepaid balance
• Outstanding balance

Where to find: Log in to Carta > Select a fund within your investment firm > Navigate to the Partners tab > Select 'Export partners'

Timing: Rolled out to funds using our Fund Administration services on April 30, 2021.

Audience: General Partners, CFOs, Investment teams.

Streamline your compensation processes and compensate with confidence on Carta Total Comp. 

Whats new?

Easily build, manage and apply your compensation strategy across your entire employee base taking both geography and custom compensation bands into account. 

To adjust your Plan settings, click on the Details link on the top left of the Scorecard page.

Geo Adjustment

You can now choose either Local or Uniform to choose the right approach for your fully remote, hybrid or in-office working arrangement.

• Local: When selected, all employees will have their target compensation automatically adjusted to the local cost of labor for their location. You can also set a minimum threshold to ensure that employees' target compensation are not set lower relative to the top metro market rate for their roles. We recommend setting the threshold to 80%.
• Uniform: Using this option, all employees' target compensation will be adjusted to the market rate for a single location.

Compensation Bands

The compensation bands settings enables you to customize the width of your company's target bands for each track. Defaults are 15% for Individual Contributors (IC), 20% for Managers, and 25% for Executives.

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.

Announcing a new feature to manage Stakeholder Updates

Carta cap table admins can now see the updates that stakeholders make in their portfolio. Admins can easily review and approve these changes made by stakeholders to update the information in the company Stakeholders ledger. 

Why is this important? 

The most up to date information on a stakeholder can reside in an HRIS system, Payroll system, with an employee or in Carta. 

Now, stakeholder updates brings each of these sources of information together, better enabling administrators to decide what information to store and use in Carta through the reconciliation tool. 

What’s new?

When stakeholders update their address, contact email, or other info in their Carta portfolio, the new ‘From portfolio’ tab under ‘Stakeholder updates’ will surface these changes and allow the admin to quickly choose which updates to reflect in the company stakeholder ledger. 

Navigate to stakeholder updates from the Stakeholder tab in the navigation

Quickly identify discrepancies across systems and choose which information to store on the ledger

Details: 

For more detail on making Stakeholder Updates, please find more information here.

If you are interested in setting up an HR or Payroll integration, learn more here. 

Who this is available to

All Carta cap table customers

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.