Improvements to RSA issuance, acceptance, and termination
What’s New?
We’re making improvements to streamline Restricted Stock Awards (RSA) management on Carta.
- Automatically assign the issue date once stakeholders accept their RSAs
- Forfeit unvested RSAs at termination instead of repurchasing them
- Clearer legal language and displaying all attached documents during acceptance
Automatically assign the issue date once stakeholders accept their RSAs
When RSA payment is complete, company admins can confirm the payment date at Carta to trigger the acceptance workflow in Carta. By automatically populating the issue date as the day of acceptance, this eliminates the need for company admins to retroactively update the RSA issue date.
How it works
- When an RSA has been released from draft, it will appear as a new status called waiting for payment
- Enter payment details by clicking to the right of the table and selecting "Enter payment details"
- On the enter payment details screen, enter the date the RSA payment was processed offline
4. Once the RSA has payment date has been entered, the status will change to waiting for acceptance, and the securities will be sent to signatories to review and sign.
5. The RSA will not have an issue date up until it is accepted by the stakeholder. When the RSA is accepted, the issue date will automatically be assigned as the date accepted.
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Forfeit unvested RSAs at termination instead of repurchasing them
RSAs can now be forfeited rather than repurchased at termination. Users can now choose to automatically forfeit unvested shares or require a repurchase to return shares to the pool.
How it works
Under the Unvested RSA Behavior column, user can assign a new status: 'Forfeit unvested shares' to automatically forfeit unvested shares upon termination.
Clearer legal language and displaying all attached documents during acceptance
During acceptance, RSA recipients will see updated legal language for RSAs, encompassing the legally binding nature of accepting those securities at Carta. Holders must also agree that they have read and accept the attached documents before finalizing acceptance.
How it works
New dedicated tab for accepting RSAs
New acceptance screen with updated legal language and new document references
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Who is this Available For?
You can now access these updates as a Carta company administrator. Whether handling standard RSAs or RSAs for services, you’ll find it easier to keep your cap table in sync with legal documentation.
Anything Else I Need To Know?
While the attachment of supporting documents is optional during the RSA setup, ensuring they’re available during the review can help streamline administrative reviews and future audits. Refer to our support site for additional guidance on managing RSA transactions.
