San Francisco-based cryptocurrency exchange Coinbase may have had trouble paying its employees fair wages due to gender and race.
According to a report by New York Times journalist Nathaniel Popper, Coinbase paid black employees about 7% less than people in similar positions, based on salary data for 2018. For the entire company, the difference averaged $ 11,500. When options were considered, Coinbase’s black versus white pay gap was close to 11%.
The report also argues that there is a pay gap between the sexes. For example, Coinbase tier 1 executives earn 20% more than their female counterparts. On average, women in a crypto company earned 8% less, or $ 13,000, than their male counterparts in 2018.
“The pay gap appears to be much broader on Coinbase than in the technology industry as a whole, as well as several other technology companies that have had to publish data,” Popper wrote.
Source: The New York Times.
Coinbase CEO L. Jay Brock responded quickly to the allegations. In an internal email from the company published today on the Coinbase blog, the company states that since 2018 it has done “important work to ensure that [Coinbase] has a transparent and fair philosophy of paying for performance.” He said that “all qualified employees” received a 3% increase in bonus from the lowest in early 2019, and that the salary targets for employees became transparent the same year. The e-mail also says that the number of employees in the crypto company has grown from 830 in 2018 to over 1000 in 2020.
The company’s blog states: “Coinbase is committed to mercilessly eliminating biases in all our internal operations.” “We also recognize that it is best practice to regularly review our work, and while equal pay is crucial at any stage of maturity, we believe we have implemented a system to ensure fair results.”
The stock market used to be the focus for racing problems. In October, CEO Brian Armstrong said the company would maintain an “apolitical culture” and offer weekend packages to all employees who disagree with the policy. Armstrong said 60 employees planned to leave in response to the announcement, which was about 5% of Coinbase’s employees at the time.