What's new?

To improve reporting for cases where stakeholders have a smaller percentage of ownership, we have enhanced the Stakeholder Ownership Details report to display the full amount of decimal places under the "Fully Diluted Ownership %" and "Outstanding Ownership %" fields.

Why are we changing this?

Previously, the ownership percentages in the Stakeholder Ownership Details report were limited to two decimal places. For example, if a stakeholder owned 0.0135% of the company, the report would have shown 0.01%. This made a small difference for large holdings but could be more significant for smaller ones, like those of employees.

With this update, the report will now show the full ownership percentage including all decimal places, such as 0.0135%, ensuring greater precision in the reporting of individual stakeholder ownership.

How can I access it?

To access the Stakeholder Ownership Details report, navigate to Essentials > Run reports.

Where can I learn more?

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

What's new?

We've made it simple to find corresponding board consents in Carta when viewing Option Grants and RSUs on the cap table. When viewing an equity award on Carta, the new Board Details tab is available with details about the board consent that approved the issuance of the securities as well as a direct link to the board consent itself. 

Who's eligible?

All companies on Carta can utilize the board consents tool. Users with Full Access or Company Editor can view board consents for their company and will be able to view the new Board Details tab in the equity details modal. Users without access to the Board Consent tool will not see the new tab. 

How can I access it?

While logged into your cap table on Carta, navigate to Equity Awards and click any record with an option grant or RSU issued. 

With the modal open navigate to the Board details section where you'll find details about the board consent that approved the issuance of this security. Click View board consent to be taken directly to the board consent within Carta. 

Where can I learn more?

To learn more about our board consent feature, please see: https://support.carta.com/s/article/create-board-consent

What’s new?

We have added a new peer group category to view salary, total cash compensation, and equity benchmarks – based on employee headcount. 

How do I view new benchmarks?

You can view the new employee headcount-based benchmarks by visiting the Benchmarks page and selecting the peer group filter. The new peer groups will be in the dropdown alongside the current peer groups based on post-money valuation.

How do I use these new benchmarks in my Compensation Plan and Scorecards?

We are working on an additional update that will allow companies to use employee headcount-based benchmarks in their Compensation Plans and Scorecards next quarter. 

Questions?

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

Corporations What’s new?

Understand how a SAFE financing round will impact your ownership when it converts in a future priced round. Our new SAFE Modeling tool removes the guesswork by providing current fundraising benchmarks, customized to companies in similar industries and stages. 

SAFE Modeling is available in all Carta plans. This feature allows users to see how SAFEs they’re raising will impact their ownership, how it will convert for investors, and what terms are most favorable for them to raise on. 

Why is it valuable?

Dilution occurs the most in the earliest financing rounds. By not modeling ownership at the pre-seed and seed stages, early founders may find themselves more diluted than expected when it converts during a priced round. SAFE Modelings gives founders an easy to use tool to understand the impact of a SAFE round to their ownership.

How does it work?

To get started, navigate to Model your Fundraise, and select Model your SAFE. 

Select the existing investments in your cap table that you want to include in your model and/or add additional investments. 

Explore how you and your stakeholders ownership and share value is impacted. You also get a detailed view of current ownership, post-money ownership, post-money valuation, and post-money shares by stakeholder and by share class. 

Interactive graphs further visualize the impact on dilution and ownership changes, using pre-populated priced round terms from Carta’s fundraise benchmarks data. Carta will show suggested priced round terms based on current fundraising trends specific to your company’s stage and industry. For smaller, niche companies an industry aggregate will be used. 

How do I learn more or get help?

To learn more about SAFE Modeling, check out this support article or reach out to your Account Manager for a demo.

What's new?

Carta has partnered with Deel to help international employees exercise their options. Customers of both Deel and Carta will now have support for Deel calculated tax withholdings and local currency payments for option exercises. Lengthy in-house tax calculations and exchanging local currency into USD to pay for an exercise is now a thing of the past. 

Who's eligible?

With its debut, this integration will cover Carta customers who have Deel EOR and Deel Global Payroll employees in the following countries:

• France 🇫🇷
• Germany 🇩🇪
• India (Deel Global Payroll only) 🇮🇳
• Israel 🇮🇱
• Italy 🇮🇹
• Netherlands 🇳🇱
• Nigeria 🇳🇬
• Poland 🇵🇱
• Portugal 🇵🇹
• Singapore 🇸🇬
• Spain 🇪🇸
• Switzerland 🇨🇭

Canada 🇨🇦 will also be covered by this integration by end of Q2 2024. 

How can I access it?

Companies using Carta and Deel can activate the Carta integration in their Deel accounts today to automate their global equity tax withholdings.

Employees at companies who have activated the above integration will automatically enjoy the benefits as long as they submit their option exercise request within 15 days prior to their respective option expiration date to ensure they can use the Carta–Deel integration to streamline their option exercise experience. 

Non-eligible employees will be routed to the default Carta experience. 

Where can I learn more?

For more information on how the exercise experience will work, please refer to our support article https://support.carta.com/s/article/exercise-options-using-carta-and-deels-exercise-flow

What’s new?

We have updated salary, total cash compensation, and equity benchmarks for all job areas and specializations. Additionally, we have updated US geographic adjustments for all metro areas as well as international market adjustments and currency conversions. 

Benchmark Trends

In aggregate, salary and total cash compensation benchmarks are slightly higher than our last release, increasing by 1%. Salaries increased slightly more for companies with valuations up to $100M. Across all roles, levels 7 and above tended to increase more than levels 6 and below. Similar to previous updates, specialization level data continues to change more than the broader sample, as sample sizes for these roles are smaller than job area level data.

Equity benchmarks are increasing in aggregate, showing about a 4% increase versus last quarter. Looking at equity trends by valuation, equity benchmarks increased the most for companies with valuations greater than $500 million.

Looking across updated geographic differential data, we observed our top market compensation increasing faster than most other metro areas, resulting in some slightly larger discounts between our top markets and other cities. Most of the larger metro areas within our dataset, however,  have remained relatively stable. For international locations, salary and/or equity adjustments have changed by 10% or more in the following countries: Brazil, Germany, Singapore, Japan, United Arab Emirates, and Switzerland. 

What were the largest areas of movement from these benchmarks?

Salary - Salary benchmarks for most job areas and specializations are within 2% of last quarter’s data. 

Equity - We saw a wider range of equity changes this quarter compared to previous quarters. Some of the larger increases are in Recruiting, Strategy, Project Management, and Sales/Solutions Engineering which are all increasing 10-15% versus last quarter. Mobile Engineering and Product Management saw the largest decreases vs. last quarter (6-8%)

How do I update my benchmark version?

You can also preview the new benchmarks on your Scorecard by navigating to the Benchmarks page and clicking on the "Preview benchmarks" bubble in the top left.

Here 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.

Questions?

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

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.