Corporations  Equity Administrators Improvement 

What’s new?

Previously, Carta's public markets RSU settlement tool grouped all vested tranches for an RSU grant into a single settlement entry. Carta now captures the settlement of each RSU tranche separately, including shares sold or withheld to cover taxes per tranche. 

This enhancement applies to public RSU grants with multiple vested but unsettled tranches.

This change provides the following improvements:

1. Clarity on taxes: If an issuer is releasing multiple tranches at once for a single grant, taxes are now easier to review and reconcile. Each tranche’s taxes are shown distinctly in our reports.
2. Clarity on net shares: Carta’s reporting now breaks down the shares sold or withheld for taxes for each tranche. This provides additional clarity and ease of reconciliation for participants selling net RSU shares through 10b5-1 trading plans.

Changes to reports:

Tax calculations are now captured at the vesting tranche level when setting up an RSU settlement. 

• The vesting date for each tranche now has its own row in our RSU Settlement Batch tax estimates report. Administrators can override taxes for an individual vesting tranche as part of an RSU settlement.

Shares sold or withheld for taxes are now captured at the tranche level in Carta's RSU Settlement Details report. 

• Net RSU shares sold pursuant to 10b5-1 plans in Carta are easier to interpret and reconcile, since we capture gross and net shares per tranche for each RSU settlement.
• Our settlement reports have been updated to show tranche level settlement information.

Timing:

This enhancement will be released to all public Carta companies on February 2, 2022.