Coinbase, a crypto exchange based in San Francisco, may have had a problem with paying its staff fairly based on gender and race.
Coinbase paid salaried Black employees about 7 percent less than people in similar positions, according to a report by The New York Times journalist Nathaniel Popper, based on payroll information from 2018. This averaged out to a difference of $11,500 across the business. The gap between white and black employee compensation at Coinbase was closer to 11 percent when factoring in the company’s stock options.
A pay disparity by gender also alleged in the report. Male level-one administrators at Coinbase, for instance, earned 20% more than their female peers. Women at the crypto company were paid 8%, or $13,000, on average, less than their male counterparts in 2018.
“At Coinbase, the pay disparities appear to be much larger than those in the entire tech industry and in the few other tech companies that have had to release data,” Popper wrote.
Coinbase was quick to respond to the allegations
Coinbase Chief Officer for People L. J. Brock was quick to respond to the allegations. The company claims in an internal company email posted today on the Coinbase blog that it has done “significant work to ensure [Coinbase’s] pay-for-performance philosophy is transparent and fair” He stated that in early 2019, ‘all eligible employees’ received at least a 3 percent increase in compensation and that the pay targets of employees were made transparent later that year. The email also reported. That the crypto company’s number of employees has grown from 830 in 2018 to more than 1,000 in 2020.
“In all our internal processes, Coinbase is committed to ruthlessly eliminating bias,” the company blog states. “We also recognise that checking our work on a regular basis is best practise. And while pay equity is critical at any stage of maturation. We believe we have implemented the framework to ensure that we achieve equitable results.”
The exchange was previously in the spotlight on issues relating to race. In October, CEO Brian Armstrong said the company would adopt a “apolitical culture,” providing any employee. Who disagrees with the policy with exit packages. Armstrong said that in response to the announcement, 60 staff members planned to leave. Roughly 5 percent of the workforce of Coinbase at the time.