What's behind the shift in startup compensation strategies? Explore the Latest Trends in H2 2023
Hiring halved last year: Companies on Carta made 267,818 new hires in all of 2023, a far cry from the 523,487 hires made in 2022 and 525,827 hires from 2021.
32% of new hires from 2022 departed their companies: Even among very recent hires, employee turnover has been considerable. About 32% of employees hired in 2022 are no longer with the company, and about 23% of new hires from 2023 have already moved on.
Equity packages have stabilized: The average amount of equity issued to new hires increased by 0.2% in January 2024 compared to September 2023. That's a small change, but it's an abrupt shift from recent history: Previously, equity benchmarks had declined by 37% between November 2022 and September 2023.
"Over the past five years, companies of all sizes on Carta have displayed a new emphasis on hiring individual contributors. Among companies valued at less than $100 million, the rate of hires who are ICs increased from 50% in 2019 to 60% in 2023. Among companies valued at more than $100 million, the rate has increased from 46% to 60% over that span. "