Deel & Carta announce new global equity partnership
Deel, a global payroll and HR company, has teamed up with equity management platform Carta in a partnership that aims to simplify the process of exercising stock options for global employees. The alliance will automate global equity tax withholding and enforce compliance with potentially complex international tax regulations. With a growing trend in international recruitment, granting equity to global employees has become increasingly complex due to differing tax laws.
This partnership combines Deel's payroll expertise with Carta’s adeptness in equity management to present businesses with a wide-ranging solution. The integrated system simplifies compliance while providing employees with a user-friendly way to handle their equity. Companies using both Carta and Deel will now be able to automatically synchronise equity events across the two platforms.
When global employees exercise their options, Deel will record these transactions, compute local taxes, and manage payment collection for local authorities. Significantly, employees can now pay for option exercises in their home currencies. Deel will handle foreign exchange through its payment rails, thus ensuring the employees’ shares are fully paid for and the correct sum is forwarded to the company in USD. The resolution will alleviate a commonly faced issue for foreign employees wishing to exercise their options, frequently encountering delays when trying to transfer USD to cover the associated costs.
Deel's dedication to present businesses with efficient, expansive tools for managing a global workforce is further illustrated with this strategic move. The partnership simplifies equity administration and makes total compensation management easier for global teams. Ryan Freeman, Head of Partnerships at Deel, stated, "Deel's partnership with Carta is transformative for companies providing equity benefits to their international teams. Together with Carta, we're making global ownership accessible to all, helping companies worldwide create more engaged and motivated teams, and ensuring ownership opportunities reach every corner of the globe."
On behalf of Carta, Reed McBride, VP, Strategic Partnerships and Ecosystem Development, commented, "Our groundbreaking partnership with Deel marks an industry first in global equity management, delivering an integration that simplifies the complexities of international money transfer and tax compliance... Our integration empowers companies to confidently provide global equity to their international team members while ensuring simplified fund flows for option exercises, with precise tax withholdings."
In conjunction with this partnership, Deel has revealed considerable updates to Deel Equity, extending its support for additional equity types and presenting detailed information such as vesting schedules, grant details, expiry dates, and comprehensive documentation. The innovative system allows companies to monitor their employees' compensation with integrated reports covering benefits, equity payroll and more.
The collaboration between Carta and Deel, which focuses on global equity tax withholdings, aims to encourage broader distribution of ownership worldwide. Initially, the integration will cover Deel EOR and Deel Global Payroll employees in a number of countries, with plans to include more countries in the future. Carta and Deel users can activate the Carta integration in their Deel accounts from today, automating their global equity tax withholding.
