Underpayment, and accusations of Racism levelled at Coinbase

A report from the New York Times revealed serious differences in the pay of female and black employees. It is wells the next fat, in the Coinbase occurs. This time the scandal comes at a very bad time, and plugged in the Startup but in the middle of planning for the IPO.

In a recently published Article the New York Times allegations revealed female and black employees who complain about unfair working conditions at Coinbase. Thus, women and People of Color were paid less than their male, white colleagues. The basis of the report provide analyses of the economic scientist Alexandra Marr, of the delivered previously, analyses for court processes, which had a wage distortion of the subject. Marr under content examined data from 448 employees of 2018. A staff of nine, which appeared in the data, validated them on the basis of their own Figures and from colleagues that they knew.

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The analysis in the case of Coinbase revealed that women, on average, 13,000 US dollars (8 percent) received less salary than their male colleagues in similar areas of activity and positions. In some cases there are discrepancies of up to 20 percent. The analysis of the difference, roughly, into “Manager”, “Engineer” and “Non-Engineer”. The occupational groups were compared in different hierarchy levels (Level 1 to Level 6) to each other. The investigated Department at Coinbase had to show at least three female employees. The largest difference was in the Level-1 managers, where female employees with 20 per cent less salary had to be happy. The Level-1 Non-Engineers had the second largest deviation of 18 percent. The third place Level-3-Manager occupied. There, male employees received an annual rate of slightly more than 200,000 US dollars, while female colleagues at an annual salary of nearly $ 170,000 came from. A disparity of 16 percent.

In two of the fourteen fields of activity at Coinbase, there was a slight Overpayment for female employees. So female Level 1-earned-Engineers about 7 percent more than their male colleagues. Also on the Level 6 Manager level, there was a two per cent female the Overpayment.

Black employees are paid less – allegations of systematic racism

According to the article, including the dark-skinned employees of the unequal wage distribution would be affected. 16 black staff appeared in the analyzed content data. They got to 11,500 U.S. dollars less. The are got 7 percent less than all other employees. While anonymous reports of black employees accuse the Tech-Startup from San Francisco is also systematic racism.

As the New York Times reported to have placed a Manager about a black employee in front of other colleagues conjecture as to whether he is carrying with a drug dealer or a gun. Another dark-skinned Employee describes a Scene from an interview in which the Manager told him frankly that he does not think that black workers as less capable. And, in turn, another employee reported reduced treatments to just let your Manager you and your black colleagues. So you were also passed over for promotion in favor of white, less experienced staff.

In a statement, L. J. Brock, Coinbase’s Chief People Officer, said that the company began at the end of 2018, a comprehensive Review of remuneration across the company.

As a result of this process, we have introduced a new compensation program that Coinbase is on a par with some of the world’s most respected technology company. This program included: the implementation of a robust, industry-standard level of system, the introduction of non-negotiable, uniform content goals for the basic salary and the granting of justice for all roles and levels.

A request from BTC-ECHO, Coinbase regarding the racism accusations, and General salary differences between male and female employees remained to the editorial deadline unanswered and will be added as soon as Coinbase is expressed to the allegations.

Coinbase responds to content affair

Coinbase has a instead, in his Blog Press release published. Therein, L. J., Brock refers to the Story in the New York Times and explains previous successes that had occurred as a result of the new compensation program. Accordingly, since 2019, 70 percent of employees had received a salary increase. Overall, you have invested 9 million dollars in the improvement of the covers. Employees received a basic salary that the volume of base salary plus Bonus in the case of other companies from technology and financial services according to. Which employees will benefit from the salary increase, did not want to Coinbase describe, however, is more detailed.

The company explains, you will pay now gender-different uniform salaries. However, as the distribution of the salary increases, in General, looks like, remains unanswered. From the press release is only apparent that the operating adjustments in the Level-1 and Level-2 sector have concentrated. Thus, now the employees from the area, after consultation with the Board of management would be involved, of the profit of the company.

Commenting on the racism allegations, Coinbase, in contrast, hardly. Only in a sentence, they were rather passive on the issue:

Coinbase has undertaken to eliminate bias in all of our internal processes ruthlessly.

In summary, Coinbase leaves, however, still a lot of questions. As an example, a more transparent presentation of the profiteers of the content would be increases. Possibly a re-examination of the salary structure might bring new insights.

Regarding the racism allegations, the company continues to confine itself to silence. Commonly referred to cases, the events as a single. Possibly Coinbase could also in terms of the Black-Lives-Matter-movement a bit more extensive with such internal incidents addressed.

Coinbase prohibits political discourse

The alleged affair to racism and unequal wage compensation is, however, not the only Kick in the fat, the Coinbase allowed. Only at the end of September, a blog entry from the CEO Brian Armstrong caused a stir when he forbade his employees to any political discourse. He reasoned as follows:

I want Coinbase is focused on the achievement of its Mission, because I believe that we can have the greatest impact on the world.

How this concentration on the Essential looks, described by the CEO in his Statement. So his staff should take a distance from political and social discussions. The same was true for activities that had nothing to do with the core objectives of the company. Also, you participate in to Coinbase only minimally to non-profit projects. Finally, the company is working for profit.

Prominent criticism of the Statement, it was from Twitter CEO Jack Dorsey. In his opinion, Bitcoin is direct activism against exclusionary financial system, the affect so many parts of the society. Therefore, the associated social problems with which customers are faced on a daily basis, it is important, at least to recognize and connect to.

Five percent of the workforce leave Coinbase

The criticism of Armstrong’s Statements were the Coinbase CEO, however, unimpressed. Instead, he offered, in a second blog entry in October, all employees who “are not with the company goals,” a generous severance package. Then, 60 employees, about 5 percent of the total workforce, left the company. To do this, Brian Armstrong, said:

Although it is never easy when team members leave a company, I think that we will emerge as a more focused company. From time to time, we communicate our cultural standards and re-define, while we scale further.

There were not to be terminated all negotiations, if at Coinbase of a tendency towards a higher loss. Meanwhile, the new scandal comes around racism and General inequality for Coinbase more than inconvenient, the company announced only in mid-December, plans for the IPO.