Carta's public company administrators can create RSU settlements for participants that wish to move their net shares to an outside broker.
Carta's new "Non-Carta broker net withholding" settlement type allows for administrators to easily designate its participant population that wishes for its shares to be moved to outside broker accounts after settlement.
By selecting this option when creating an RSU settlement:
- administrators indicate that Carta should not move net shares from the company's transfer agent to the one or more included participants' accounts within Carta
- Carta maintains all tax withholding information and a history of shares withheld for taxes.
- administrators then electronically transfer shares directly from their transfer agent to the participant's outside brokerage account. Carta will not request the shares for the included participant(s) or create a position in the participant(s) portfolio for the shares.
To use this feature, select "Non-Carta broker net withholding" and include only the participants that want their shares to go directly to other brokers (and not their Carta account). Then confirm taxes and approve the settlement as usual.