Coinbase, a San Francisco based crypto exchange may have had issues of underpayment based on racial and gender grounds.
The New York Times reports suggest there are at least 11 former employees that complained of discriminatory behavior at the human resource department. From a report done by Nathaniel Popper from the New York Times, Coinbase paid people of color 7% less as compared to their white counterparts in 2018. This averaged an overall difference of $11,500. The gap between black and white employees at Coinbase was a compensation close to 11%.
There is also discrimination based on gender. Male employees at Coinbase earned 20% more than their female counterparts. In 2018, women got an average of $13000 less than men. Coinbase tends to be big on pay disparities in comparison to other similar tech companies.
Coinbase acknowledged the allegations but said they are limited to just a few employees. The company’s chief people officer L.J Brock responded to the allegations saying the company has made an effort to ensure that the pay for performance philosophy is transparent and fair since 2018. He added that all the employees that were victims will get a 3% compensation increase from beginning of 2019. He added the number of employees in the firm has grown to 1000 in 2020 from 830 in 2018.
From the Coinbase company blog, it indicates that it is working tirelessly to get rid of any bias in the internal processes. The company recognizes the importance of maintaining equity and it ensures that through regular checks so that there is the right framework for equitable incomes.
This is not the first time Coinbase has been on the spotlight in regards to racism. Back in October, the CEO Brian Armstrong talked of introducing a political culture that will ensure employees who are not compliant get an exit package. Surprisingly, there are up to 60 employees who were planning an exit in response to the announcement which accounts employees at the time. From the trends, there are less chances that Coinbase workforce problems are going to be solved.
It has not been a good season for Coinbase considering it is just the beginning of the month that it was on a spotlight with the US Securities and Exchange Commission regarding IPO.
Despite everything, Coinbase is still working on doing a public stock offering come 2021.