Today we’re making design improvements to the RSU Modal to make it easier for holders to understand the value of their equity. 

What is changing? 

RSU holders now can see a summary view of their securities in the details tab, including an overview table with units breakdown. Also, double trigger RSUs are no longer stuck in a zeroed state, they can now see a breakdown of vesting information, including time-vested amounts.

Changes to the Details tab of the RSU Modal

RSU holders will see the following information on the RSU details page: 

1. Original quantity / Issued: Total amount of RSUs granted on the issue date
2. Released for settlement: The number of vested units that have been part of a settlement event
3. Delivered: The number of shares ultimately delivered to the holder as a result of converting the RSU, after any shares withheld by the issuer as payment for the holder's tax obligation
4. Withheld at settlement: The number of shares that have been withheld to cover taxes at settlement
5. Partially-vested amount: eligible for settlement when performance is hit, or the the total number of shares time vested, and available for settlement
6. Remainder: Resulting number of shares from original quantity, after subtracting settled and withhold amounts 

The bottom of the details tab will now include an employee education modal, which will be used to surface important education about their RSUs. 

Changes to the Vesting Schedules tab of the RSU Modal 

Now, holders can see the cumulative values for all vesting conditions applicable to their RSUs, which can be time or milestone based, with or without additional performance conditions.

We’ve updated the Vesting Schedules tab to account for the following scenarios (screenshots of each below):

1. Double trigger RSU (Based on time and an additional condition)
2. Double Trigger RSU (Based on milestones and an additional condition)
3. Single Trigger RSU (Based on time)
4. Single Trigger RSU (Based on milestones)
5. RSU has been terminated or expired

Double trigger RSU (Based on time and an additional condition) 

Double Trigger (Based on milestones and an additional condition) 

Single trigger (Based on time)

Single trigger (Based on milestones)

RSU has been terminated or expired

Visit the resource center for more details

Have additional questions? Check out support.carta.com to learn more.

What’s new? 

This release improves the workflow for matching employees with stakeholders on Carta. Employees with the same name and email as the stakeholder will automatically match, saving their employee ID and thereby linking the stakeholder with the employee record. The improved workflow guides you through reviewing all other employee matches. 

How does it work? 

For the reviewed matches, you can now ignore, to be reminded next time, or to choose a different stakeholder. These decisions will be saved and will not need to be rematched when running the employee matching workflow. You can now review all matches and update the decisions later. 

What do I need to do? 

To get started, you will need to connect your external data to Carta either through connecting your HRIS system, uploading a spreadsheet, or pasting the information into Carta directly.

With your external data connected, Carta will attempt to automatically match your employees. From there you review suggested matches, deciding to approve the suggestion, ignore it, remind me later, or manually choosing a different person.

If there are any employees from external data that don’t match at all to Carta stakeholders, you can choose to ignore them or manually choose a person to match.

The workflow is then completed and all matches can be reviewed.

How do I learn more?

For more information on Employee Matching, please read our support article.

What’s new?

The Share Class Manager page will be updated this coming Monday, February 6th to make it easier to navigate, and provide a consistent experience when you are updating AOI terms.

We no longer display a "Link AOI" button at the top of the page. The new flow is designed to be simple and intuitive, with the "Manage Share Class" button giving you access to update existing share classes, add new share classes, and link Articles of Incorporation.

What do I need to do?

Navigate to Capitalization > Manage share classes. Under Manage share classes, there will be three options:

• Create new share class
• Edit existing share classes
• Add historical AOIs

Where can I learn more?

Visit the Share Class Manager support article or contact us via the In-App Help Center.

What’s New

We have made UI improvements to our Wire Instructions for online wire exercises. The new UI better highlights the amount, timeline, and considerations for completing the transfer. The updates include:

• User and exercise specific details such as grant, company, option holder, date, and amount.
• Clearer instructions for the bank on how to handle intermediary fees with specific SWIFT payment instructions. 
• Approval and reminder emails now show the last day for Carta to receive funds, so the exercise can be complete.

Who this affects

All international users who are exercising options via online wire. 

How it works

The updated Wire Instructions will be available in the same places as before (Tasks view, PDF, Exercise Progress view). You can see the new templates here:

Tasks view

PDF

Exercise Progress view

Email communication

Both Approval and Reminder emails show the date for Carta to receive funds.

Timing

• Available on all online wire exercises starting 11/30/2022

Additional Resources

Support Article: Exercising Via Online Wire

Who This Affects

Users without a verified secondary email address

What’s New

Additional emails are required to assist users with providing a secondary login credential in case access to their primary email address is lost. As part of our efforts to improve our clients' account security, we are updating the process of adding and verifying your additional email address. 

As part of this release, we will be notifying all users without a verified additional email address to add or verify the email they have listed. This subset of users will be receiving an email notification, as well as an outstanding task in their Carta account’s task manager. 

Timing

• This update is available to 25% of randomly selected Carta users
• General availability for all users by the end of Q2

What’s new

Private companies can now report the complete list of all ISO dispositions and see exactly which dispositions qualify for tax incentives and which ones do not, along with Ordinary Income value and other information.

How it works

Under Capitalization > Reports, find the Disqualifying Disposition Report (ISO):

Select the reporting date range, acknowledge the report’s use of in-platform securities and transactions, and then export the report to Excel:

When the report finishes generating, it will be available in the Downloads menu:

The report shows info on Disposition Type, Ordinary Income, FMV and more. In order to be completely transparent, Excel formulas are used for Disposition Type, Ordinary income, First Qualifying Disposition Date, and Disqualifying Reason fields to show how they are calculated:

Who this affects

Private companies with tender offers or secondary ISO transactions captured in Carta.

Timing

Available now for all Private market customers (the Public market Disqualifying Disposition Report is available at request as part of the Early Access release).

Additional resources

For more information around the Disqualifying Disposition Report and underlying data, please refer to this support article.

Soon, Carta customers will start seeing an expanded set of Roles to help you reflect the different individuals who are handling different aspects of Cap Table management.

For now, users assigned to new roles will serve as point of contact for their areas. Over time, these individuals will see updated experiences and be guided to relevant Carta tools.

To see this experience, Navigate to "Company > Permissions and Roles > Roles"

Option exercising with Public companies is now easier than ever. 

The exercising experience for public companies has been improved. The exercise request is now a coherent workflow guiding users through each step and providing key information about the exercise. With this detail, users can be more confident with their selection at each step of the exercise request. If there are issues with the exercise, clearer banners explain how Carta calculates share amounts and market prices.

Who this affects: 🇺🇸 Public US companies

What's new:

• New experience for exercise requests:

  • Added explanations of exercise transaction methods
  • Clearer confirmation of address and payout method
  • Improved order details with indicators on maximum eligible options and clear explanation of order types
  • Incorporated review of taxes withheld and reminder of potential for additional taxes owed at end of the year
  • Summarized the exercise request clearly laying out the cost and transaction details so users understand what will be needed 
• Cashless exercising reflects issuer imposed trade limits

Action required: No action required

Timing: Released to 100% of all public companies on Jan 24, 2022

Private market issuers that go-live on or after 11/09/2021 can now track updates to company share classes’ rights and preferences as they are changed over time. This feature will roll out to other issuers in the next few weeks.

Users with the Legal administrator permissions will be able to make changes to the share class details. Users with the Company editor or Company viewer permissions will only be able to view the share class details.

Experience Overview

1. Navigate to Securities > Shares.
   
   
2. Click Manage share classes and select Create/edit share classes.
   
   
3. The in-app spreadsheet loads in view-only mode, to prevent accidental input, which is indicated by the grey rows.
   
   
4. Create a new share class by clicking on the related button on the top-right of the screen.
   
   
    

5. To make edits to the share class details, click the Edit to the right of the AOI version date and name. If editing from the active AOI version, Admins will have the ability to reflect both a clerical error or amendment
   

   
   1. If you are editing a past AOI version, Admins will only be able to make edits because of a clerical error.
      
      
   2. If reflecting an amendment, Admins will be able to upload the related Articles of Incorporation (AOI) or select one from the Library page. In addition, a name can be added to the AOI version.
      
      
   3. Click Continue to save.
      
      
6. At this point, the Admin can make changes in the spreadsheet. The side-panel will expand to show helpful content related to the selected cell.
   Cells that are painted light gray cannot be edited because the data may be in-use, a calculated value, or not applicable. Respectively, examples include share class names, the calculated outstanding value, and conversion price for common shares. Reference your AOI or contact your legal partner if you need help filling out this spreadsheet.
   
   
7. After edits have been completed, click Finish editing and save.
   
   

Carta will check your entries for any errors and provide actionable messaging to help you make corrections.

1. Review the summary of changes, then click Confirm and save. No email notifications are sent due to the changes.
   
   

2. Admins can navigate between AOI versions with the AOI version selector, which will show the filing date and version name as dropdown options.

   

   
   

Carta will be making improvements to tracking the company’s cap table, financing history, and reporting in the next few months to incorporate time-versioned share class information.

Have questions? Read about FAQs in our support article.

What’s new

Companies can now adjust taxes for option exercises previously approved in Carta.

Legal administrators can navigate to the Exercises ledger (Transactions > Exercises) and select "Adjust taxes" within a ledger row dropdown to find the new tool:

How it works

The "Adjust taxes" tool will not be available for option exercises in the "Requested" status since option exercise approvers can adjust taxes as part of the exercise approval workflow.

For ACH option exercises already approved by the company or for company-entered manual exercises, the "Adjust taxes" tool will be available for use.

After a legal administrator selects "Adjust taxes" from the Exercises ledger, they'll see the following modal:

The legal administrator will be asked to provide a reason for the adjustment. Next, the following actions are available:

• Un-check a box next to a tax type to remove it from the option exercise
• Re-check a box to re-add a previously removed tax type to the option exercise
• Update the specific tax withholding amount in the "Adjusted" column
• Select "Add another tax type" to add a new tax type to the option exercise

Note that new tax types can't be added from this modal. If you'd like to add a new tax type to the exercise, add it first in the Tax rules page (Compliance > Tax rules) and then come back to the "Adjust taxes" tool to add it to the option exercise.

Once the adjustment has been saved, both the company and the stakeholder will see a blue banner when viewing the option grant. The banner contains information about the newly adjusted tax amount and exercise cost in addition to when the adjustment was entered in Carta:

Adjusted tax amounts will also be reflected in the "Exercised and settled report" and the "Tax withholding report" (Capitalization > Reporting).

For more information, check out the support article for the new "Adjust taxes" tool: https://support.carta.com/s/article/adjust-taxes-option-exercises

Who this affects

Private and public companies that issue option grants.

Timing

Available to all companies now.