A better offer letter

At Carta we spend a lot of time thinking about how to better educate employees on startup equity. Even new hires at Carta often don’t understand the equity compensation component of their offer letter. So we decided to create a new offer letter.

I have included highlights of our offer letter with captions below. We are making available a full example of our offer letter, that you can find here. I have also included some highlights below with captions. I hope this will encourage transparency in more companies and help candidates who are currently interviewing at startups. All numbers are accurate for Carta as of 5/18/17.

carta offer letter cover page

Cover Page

better offer letter 2

Welcome letter

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Summary of offer

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Simplified graph of our capital structure and breakpoints

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Formula for calculating option payouts for exit values greater than $77M

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Tranche-by-tranche table of employee’s vesting schedule

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Brief advice on how we encourage employees to think about their equity

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Overview of benefits

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Home office address and weekly commute schedule (only for California offices)

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Introduction to first week’s schedule and 1-on-1s

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Required legal language regarding option details and pending board approval

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Signature page

Talk to an equity expert to learn how Carta can help you be more transparent about employee equity.

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eShares, Inc. DBA Carta, Inc. is a transfer agent registered with the U.S. Securities and Exchange Commission. The services and information described in this communication are provided to you “as is” and “as available” without warranties of any kind, expressed, implied or otherwise, including but not limited to all warranties of merchantability, fitness for a particular purpose, or non-infringement. Neither eShares, Inc. DBA Carta, Inc. nor any of its affiliates will be liable for any damages, including without limitation direct, indirect, special, punitive or consequential damages, caused in any way or arising from the use of the services or reliance upon the information provided in this communication or in connection with any failure of performance, error, omission, interruption, defect, delay in operation or transmission, computer virus or line or system failure. Transfer Agent services for DTC-eligible registered companies provided by Philadelphia Stock Transfer, a Carta affiliate. Carta Securities LLC is a broker-dealer and a member of FINRA and SIPC. Contact: eShares, Inc. DBA Carta, Inc., 195 Page Mill Road, Suite 101, Palo Alto, CA 94306.