What’s new?

Companies can now classify their CEOs as being either a Founder CEO or Non-Founder CEO. This will allow companies to compare CEO compensation to market targets on both the company and employee Scorecards accurately.

How do I categorize the CEO as a Founder or Non-Founder?

Navigate to the employee list and navigate to “Edit employee” for the CEO.

Select “Job area and level” from the menu on the left, and set “Job area” to “CEO”. From there you will be able to select “Founder” or “Non-Founder” for the CEO role

Finally, click “Save” in the upper right corner of the screen to save these changes. You will now be able to compare CEO compensation to market targets on the company and employee Scorecards.

Questions?

If you have any questions about how to categorize a CEO as a Founder or Non-Founder, please reach out to your Customer Success Manager.

What's new?

We've released a significant update and redesign to Carta's Equity Reporting page to enhance report accessibility, and make the process of finding and running reports significantly easier.

Here are the highlights:

• Smart Search: Our new smart search feature utilizes a human-generated question bank and interpretive technology to deliver tailored report suggestions directly within the page, ranked by relevance.
• Featured Page: Responding to user feedback, we've introduced a new starting page highlighting reports pertinent to your tasks, company, and seasonal needs. This improvement aims to reduce the time spent navigating through extensive lists to locate essential reports.

The longer list of all reports is accessible by selecting the All Reports tab at the top of the reporting page.

How can I access it?

To access the new Equity Reporting page, click on Run reports under Essentials or navigate to Cap table and select Run reports.

Where can I learn more?

For more information on Carta's equity reports, please refer to our dedicated support article.

What’s new?

We are adding additional granularity to our CEO benchmarks by:

• Differentiating benchmarks between Founder and Non-Founder CEOs

• Providing equity benchmarks, in addition to salary and total cash. 

  • For Founder CEOs, equity benchmarks are based on total equity ownership
  • For Non-Founder CEOs equity benchmarks are based on 4-year new hire grants

How do I see benchmarks for the new roles?

You can view the new CEO benchmarks by visiting the Benchmarks page and selecting “CEO” under Area. Within “CEO” you can select “Founder” or “Non-Founder” from the Founder Status dropdown.

How do benchmarks for the additional benchmarks affect the Employee Scorecard?

Learn more about how to classify a CEO as a Founder or Non-Founder here.

Questions?

If you have any questions about these new benchmarks, please reach out to your Customer Success Manager.

What’s new?

We are introducing a new interactive report – the Equity Refresh report.  The report will let users view: 

• Which employees will complete vesting soon (in the next 6, 12, and 24 months)
• An estimated refresh grant amount for that employee

How can I access the Equity Refresh report?

1. Navigate to the Reports page in Carta Total Compensation
2. Navigate to the “Equity Refresh report” tile and click “View report” 
3. The interactive report will open

How do I use the Equity Refresh report? 

This report helps companies identify employees who should be considered for additional equity grants as a way to retain talent at the company. 

Questions?

If you have any questions about this new report, please reach out to your Customer Success Manager.

What’s new?

We're introducing the latest addition to our platform: the beta release of Carta Distributions. Our team has been hard at work, dedicated to simplifying the distributions process and providing a seamless experience for our users. With this release, we're transforming what was once a multi-step process into a matter of clicks. Say goodbye to cumbersome inputs and hello to streamlined efficiency.

With Carta Distributions, you can:

• Seamlessly connect to your cap table and customized distribution rules
• Automate calculations to determine holder payouts
• Integrate distributions with waterfall modeling 
• Direct holders to a dashboard that tracks their invested capital and any preferred returns that have been paid out to date  

Why it matters:

Our customers have spoken, and we've listened. Distributions are a critical aspect of their financial operations, signaling value generation for stakeholders. However, the previous tool fell short of expectations. With Carta Distributions 2.0, we're addressing these pain points head-on, enhancing user experience and satisfaction with the tool.

What’s included?

The release focuses on revamping the user experience of the Distributions tool, with support for both pro-rata and custom distribution methods. We're committed to providing a seamless and intuitive interface, making it easier than ever for our users to manage distributions.

What do I need to do?

If you’re interested in trying out the new Carta Distributions, you can reach out to your account manager or schedule a demo here.

What's next?

In the coming weeks, we'll be rolling out additional features and enhancements. Users can expect to see improvements that allow them to visualize the impact of distributions on invested capital balances across the platform. Plus, we'll be introducing email notifications to keep users informed every step of the way.

What’s new?

We are introducing a new page available to Launch customers - Carta Insights. This page will provide both education and data that we believe will be helpful to Founders as you build your company.

The information we’re including today is built around compensation. Carta Insights will provide you with:

• Educational materials on how to think about setting up your compensation program
• Data on typical option pool sizes and equity grants for your first employees
• Salary and equity benchmarks for Engineering and Marketing roles

How can I access the Carta Insights?

1. Select “Carta Insights” from the side navigation bar
2. Click on the section of Carta Insights that you would like to access

Questions?

If you have any questions about this new report, please reach out to launchsupport@carta.com.

What’s New

You and our shareholders can  now see exactly which securities are eligible for the QSBS tax benefit on Carta. Companies who purchase a QSBS Attestation letter with Carta, can share a personalized version of their QSBS attestation letter with their individual shareholders.

For company administrators

Give your shareholders access to a personalized QSBS statement in their portfolio with one click. Log into Carta.com --> navigate to the QSBS Tax Break page --> click on 'Share QSBS Attestation'.

By selecting ‘Share QSBS attestation’, all individual shareholders will receive an email notifying them that they have a QSBS statement available for download in their portfolio. They will be able to see the statement in their portfolio on Carta.

Sample email that will be sent to individual (or direct) shareholders

For individual shareholders with QSBS eligible securities

When viewing your portfolio on Carta, you will see a banner on top of any company that you hold QSBS eligible securities. If your company has shared the QSBS attestation with you, you will be able to download the statement directly from the main portfolio page.

If you hold securities that may be QSBS eligible - you will also see two new sections on your holdings page:

1. QSBS Tax Benefit tile that will show you

   1. Number of shares that are QSBS eligible today
   2. Number of shares  that will be QSBS eligible when the holding period requirement is met
   3. Maximum tax savings amount based on your cost basis in the securities
   4. If shared by your company administrator, a link to download and view your personalized QSBS statement.

2. Table of QSBS eligible securities that shows:

   1. Security label
   2. Purchase date
   3. QSBS Eligibility status
   4. Link to your personalized QSBS statement if shared by your company

In addition to the new sections in the holdings page, your certificates on Carta will have a new section for QSBS status and the QSBS Attestation.

Personalized QSBS statements

The QSBS statement will show you a personalized snapshot of the QSBS eligible securities you hold as of the download date. The PDF can be used to share with your tax or legal advisors when going through the sale of your shares or discussing your personal situation. The QSBS statement will only be available to individual holders in this release, and not investment firms. 

Disclaimer:
eShares, Inc. DBA Carta, Inc. does not provide tax, accounting, or legal advice. You are advised to consult with your tax, accounting, or legal advisors regarding any financial, tax or legal implications of exercising your options or selling any shares.

Learn more about how Carta can help you with QSBS

If you or your company would like to learn more about how Carta can help you take advantage of the QSBS tax break, or check out our announcement: https://carta.com/blog/introducing-qsbs-attestation/ 

What's New?

Carta has revamped the Equity Plan report – consolidating key information from different reports, and adding brand new, highly requested functionality. This update provides a comprehensive overview of your equity landscape via summary figures, the ability to tie the change in values over a period via baked-in formulas, and granular security-level details.

What does the report contain?

Base version:

• Available Report: Obtain a holistic snapshot of your equity plan, including reserved, outstanding, and available shares, for centralized monitoring and management.
• Equity Plan Granted: Delve into security-level details to track issued, outstanding, vested and more, for optimized management of individual security allocations within your plan.
• Canceled And Returned: Stay informed about cancellation transactions, understanding the status of securities returning to the pool due to various events, ensuring accurate reconciliation and planning.
• Pourovers: Track share movement between equity plans transparently, for seamless reconciliation and efficient equity management.

Optional add-ons when exporting:

• Transactions Ledger: Monitor all share movements with a breakdown of transactions affecting equity pool values, for detailed reporting and analysis.
• Rollforward: Tie out the movement of equity issued under the plan, filtering by period, plan, and even stakeholder to gain insights into share movement over time with ease and clarity.
• Stakeholder Sums: Get a concise summary of outstanding securities for each participant, for efficient monitoring of individual stakeholder positions within your equity plan.

How can I access it?

You can download the new Equity Plan report from your Carta company account by navigating to Essentials > Run reports > Equity plan, or by going to Cap Table > Run reports > Equity plan.

Where can I learn more?

For more information on Carta's new Equity Plan Report, please refer to our dedicated support article. Additionally, you can find details on exporting reports in general on our support site.

What’s new?

We are introducing a new interactive report – the Compensation Summary report. Users can now see a complete view of employee salary and equity spend by by Job Area, Track, or Location and evaluate headcount costs to market targets for these groups.

How can I access the Compensation Summary report?

1. Navigate to the Reports page in Carta Total Compensation
2. Navigate to the “Compensation Summary report” tile and click “View report” 
3. The interactive report will open 

How do I use the Compensation Summary report? 

With the Compensation Summary report, you can view employee salary and equity spend grouped by Job Area, Track, or Location in a table view. Any datapoint that is +/- 10% of the market benchmark will display in red. The Compensation Summary report provides several summary insights including: 

• Projected Annual Salary Spend - the projected calendar year salary spend based on all current salaries and how it compares to market data
• Largest Salary Spend - the area with the largest salary spend and how it compares to market data
• Largest Equity Spend - the area with the largest equity spend and how it compares to market data

Summary insights take into account only employees with complete information and eligible benchmark targets. Users can export their Compensation Summary report to share and use in reporting. 

Questions?

If you have any questions about this new report, please reach out to your Customer Success Manager.

What's new?

An IPO demands meticulous preparation to ensure a company’s governance, finances, and internal protocols   comply with the high regulatory standards for selling shares to the public. The journey to listing day often takes months or years, with the most arduous and time consuming part of the process being the financial and cap table audit.

Recognizing the critical need for thorough preparation, Carta now offers a comprehensive bundle of IPO readiness reports. This streamlines the preparation required for the audit and S-1 drafting by consolidating applicable reports in one location and allowing a one-click bulk download.

What does the bundle contain?

The IPO Reports Bundle packages three different sets of IPO relevant reports: Equity Reports (security and stakeholder specific information), Valuation Reports (all 409A valuations during the company's lifecycle with Carta) and Financial Reports (stock-based compensation expense and minimum disclosure reports). 

How can I access it?

You can find the IPO reports bundle from your Carta company account by navigating to Essentials > Run Reports, or by going to Cap Table > Run reports.

Where can I learn more?

For more information on Carta's IPO reports bundle, please refer to our dedicated support article. Additionally, you can find details on exporting reports in general on our support site.

If you have questions about other ways Carta helps our customers prepare for an IPO, please refer to our IPO Readiness Guide and Checklist.