Carver Edison

Carver Edison, a New York-based financial technology firm founded in 2016, operates with a mission to democratize wealth-building opportunities for employees of public companies. The company was established by Aaron Shapiro, whose journey into fintech was inspired by a personal connection to the issue of financial exclusion. A graduate of Babson College with a background in institutional investing, Shapiro witnessed his own mother miss out on substantial earnings by being unable to participate in her company's Employee Stock Purchase Plan (ESPP) due to affordability constraints. This experience prompted him to develop a solution to this widespread problem.

The firm's core business revolves around enhancing ESPPs for its corporate clients. Carver Edison's patented flagship technology, Cashless Participation®, enables employees to acquire company stock without the need for upfront payroll deductions, which traditionally pose a significant barrier to entry. The business model involves Carver Edison providing the funds to cover employee stock purchases, which are then repaid through the automatic sale of a portion of the shares acquired. This allows employees to own significantly more stock—often 50% to 150% more—than they could afford on their own. The service is designed to seamlessly integrate with existing stock plan administration platforms, such as Morgan Stanley's Shareworks and Equity Edge Online, at no cost to the client company. Revenue for Carver Edison is generated through capital markets activities that sustainably fund the program.

Carver Edison primarily serves publicly traded companies seeking to improve their employee benefits packages, boost talent retention, and align employee interests with shareholder goals. By making stock ownership more accessible, especially for lower-earning employees, the company helps its clients increase ESPP participation rates, which in turn can provide the company with an infusion of paid-in capital. In addition to its primary offering, the company provides an educational platform, Carbon™, to help companies create and manage equity compensation education campaigns. The company has received significant milestones, including a landmark private letter ruling from the IRS in 2019, which affirmed that companies could use its program while maintaining the qualified tax status of their ESPPs. Carver Edison is backed by notable figures in the fintech industry, including Eli Broverman, co-founder of Betterment, and Jeff Cruttenden, co-founder of Acorns.

Keywords: Employee Stock Purchase Plan, ESPP, financial wellness, equity compensation, Cashless Participation, stock plan administration, employee benefits, fintech, wealth building, share ownership, Aaron Shapiro, employee financial empowerment, stock access, corporate stock plans, global equity, financial inclusion, employee retention, equity benefits, stock ownership solutions, compensation management