Cryptocurrency start-up underpaid women and black employees, data show

Fast-growing cryptocurrency start-up coinbase has been accelerated in recent months Tension between officers and employees Those who said that they are being treated unfairly because of their caste or gender.

While the company’s management has argued that the complaints were limited to a handful of employees, Coinbase’s own compensation data suggest that the disproportionate behavior of women and black workers surpassed that of some disgruntled workers.

According to data analysis, recently obtained data by The New York Times indicated that women at Coinbase were paid an average of $ 13,000, or 8 percent, less than comparable jobs and ranks within the company. Details for most of Coinbase’s approximately 830 employees at the end of 2018.

The picture was also uneven for the 16 salaried black employees in the data. They were paid $ 11,500 or 7 percent more than all other employees in similar jobs.

The wage disparity in Coinbase is much larger than those in the tech industry as a whole, and in some other tech companies that have had to release data.

The combustion analysis was conducted by Alexandra Mara for The Times, which has provided statistical analysis for court cases involving pay bias. When he factored in stock options for Coinbase employees – often a significant portion of salaries at start-ups – compensation for women and men was almost the same, while the difference between white and black employees increased to 11 percent .

The nine employees included in the data confirmed the accuracy of the data about themselves and their partners.

Salary inequality is likely to add stress to San Francisco company, which is a ride Cryptocurrency price surge Like bitcoin. It recently told regulators that it intended to file for an initial public offering.

Many black workers in Coinbase recently Publicly complained about discrimination in the company. According to five employees with knowledge of the company’s documents and complaints, many women working at Coinbase have also complained internally about how they were hired, paid and promoted. People will only speak on the condition that they are not named because they signed illegal agreements.

Compensation analysis offers a new and detailed picture of the challenges women and black employees have faced at Coinbase, a start-up that has taken center stage in Silicon Valley to a wider debate about how fewer employees Is treated.

“It certainly looks like a company with a problem,” said James Finberg, a lawyer who leads the two largest cases in Silicon Vale, against Oracle and Google, after reviewing Coinbase data.

Coinbase’s Chief People Officer, LJ Brock, said in a statement that the company began conducting a comprehensive review of compensation across the company in late 2018.

“As a result of this process, we implemented a new compensation program, bringing Coinbase with some of the most respected technology companies in the world. The program included: implementing a robust, industry standard tier system; Implementing unattainable, single pay targets for base pay; And providing equity for all roles and levels, ”Mr. Brock said.

Brian Armstrong, Chief Executive Officer of Coinbase has pushed himself forward on his management strategy and skills, writing several memos for him Create a “coherent culture” Dedicated to development. According to current and former employees, surveys and internal documents, their strategy has left many workers feeling small or isolated.

Increasing criticism of employees can make it harder to recruit new workers at a time when the Coinbase is needed by them. More than 60 employees – or 5 percent of the company – resigned this fall after Mr. Armstrong Implement new policies Preventing employees from discussing non-politics and social issues during work.

The details of compensation paid to the Times are not earlier than 2018. At the time, the company had about 830 employees, which the data shows. Coinbase has since grown to about 1,100 employees.

The tech industry has largely struggled with unequal representation and pay for women. Pinterest, for example, Agreed to pay $ 22.5 million this month to settle a suit From his former chief operating officer, the company accuses him of sexism and discrimination.

But some companies have released detailed information about salary. People like Google and Oracle did so in response to lawsuits brought by female employees accusing pay bias companies.

Data analysis from those cases Explains that Coinbase had larger wage disparities between men and women than Google or Oracle. At Oracle, the difference between men and women with similar backgrounds and roles was 3.9 percent, according to analysis in a court case against the company – less than half of Coinbase’s gap.

“If I were running a company and I knew that my numbers looked worse than when people sued me,” I’d be worried, “said Janice Madden, a professor at the University of Pennsylvania who analyzed the Oracle case.

Numbers in Google and Oracle cases controlled for factors such as experience and education, which were not possible in Coinbase statistics due to the range of data shared with The Times.

The data from Coinbase reached by Ms. Marr took into account the job levels of all employees as well as their status as an engineer and manager. It is possible that if the analysis takes into account more factors, then wage inequality will decrease.

In the 14 job categories in Coinbase with at least three women, the average woman earned less than the average male in all two job categories.

Black employees, on average, earned less than white employees, but one of the eight job categories that had any black staff members showed an analysis by Ms. Mara.

Salary disparities are complicated by the fact that women and black employees in the company were concentrated in low-paying jobs.

According to a 2018 analysis of the company obtained by The Times, in Coinbase, the engineering staff was only 13 percent female. According to an internal analysis of the company shared with the Times, Coinbase considered the competitors to be half of the industry average and lower than the number of the 11 companies.

Employees were unhappy about salary and culture many Negative Review Career site Glassdoor cites problems with pay and representation for women and black employees, culminating in a total rating of 1.1 out of 5 on diversity and inclusion.

Due to poor reviews among executives, some people who insisted for a change in the company’s culture, according to four former employees briefed on the negotiations, who would only speak on condition of anonymity due to signed contracts.

A review that was often discussed within the company said “Faint pro-male bias is out of control” and warned women that “you will get a lower salary than your male colleagues, passed for promotion.”

Mr. Armstrong usually ignored recommendations from employees who spoke with him about their concerns about diversity, The Times previously reported.

Internal figures to The Times show that since 2018, the company’s diversity has not changed much. When the company last reported an internal diversity report, at the end of 2019, the percentage of female and black employees – 33 percent and 3 percent – in Coinbase was almost the same in 2018.

An internal document about the company’s struggles, which asked to improve diversity from around the same time as the data, employees called on executives to “lack of engagement” on diversity, about which “confusion” “Because of the way the company cared about improving the environment for minorities.

“Without senior executive engagement, diversity is considered a secondary, rather than a priority for the organization that is ‘good’.” The document stated.

Or, as an otherwise positive review on Glassdoor, put it at the same time: “Don’t repeat the same mistakes of the past, where women and minorities are left behind.”

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