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State of Startup Compensation H2 2022

  • 1.  State of Startup Compensation H2 2022

    Posted 03-07-2023 09:57

    How are you approaching compensation and hiring in 2023?

    At Carta, we  recently released our H2 2022 compensation report (you can find the entire report here) where we've pulled data from over 216,000 employee records from companies that use Carta Total Comp layered with employee data from the 33,000+ that use Carta to manage their cap tables.  

    Startups are facing compensation markets unlike any in recent memory. Layoffs have afflicted large,  public tech companies as well as companies across the VC ecosystem. In the private markets, declining valuations and increasing intervals between funding rounds are motivating founders to conserve cash and extend runway-and payroll is the primary driver of cash burn. 

    This week we'll explore that data to start a discussion in the community to better understand how your peers are adjusting their decision making in 2023. Stay tuned this week as we dive into several key points of compensation that you need to be aware of. 

    H2 2022 highlights

    • Salaries have stopped rising: The average salary band in Carta Total Comp rose 2.1% from April to August last year. From August to November, the average fell 0.4% 
    • Layoffs are impacting all sectors: Laid off employees accounted for 52% of all employee departures in December 2022 after representing just 13% of departures in July 2021. 
    • Hiring is not keeping pace with departures: Net headcount growth across Carta cap table companies turned negative in September 2022 and has yet to rebound.

    Brent Devey
    Community Manager