US-based cryptocurrency exchange Coinbase underpaid its female and Black workers at a much greater rate than the tech industry as a whole, as per an article from the New York Times. The recent report comes following another NYT story last month revealing racial discrimination of Black employees at the crypto firm. The back-to-back exposes only confirms that Coinbase might have a problem in treating its employees fairly based on gender and race.
Coinbase Underpaid Female and Black Workers
An analysis of internal pay based on payroll data from 2018 reveals that female workers at Coinbase were paid an average of $13,000, or 8%, less than men at comparable jobs and ranks. Meanwhile, Black employees were paid $11,500, or 7%, less than all other workers in similar positions. The compensation gap between white and Black employees at Coinbase came closer to 11%.
The Coinbase analysis was conducted for The Times by Alexandra Marr, an economist, who has previously provided statistical analysis for court cases involving pay bias. The data included pay details for most of Coinbase’s 830 employees at the end of 2018.
The NYT report added:
“The pay disparities at Coinbase appear to be much larger than those in the tech industry as a whole, and at the few other tech companies that have had to release data.”
Coinbase Took an Apolitical Stance on Black Movement
In a letter to Coinbase employees in light of the recent New York Times article, L.J. Brock, chief people officer, was quick to respond to the allegations. In an internal company email posted to the Coinbase blog, Brock said:
“Coinbase is committed to ruthlessly eliminating bias in all our internal processes. We also recognize that it is best practice to regularly check our work, and while pay equity is critical at any stage of maturation, we believe that we have implemented the framework to ensure we are driving equitable outcomes.”
Meanwhile, in October, Brian Armstrong, the CEO of Coinbase, took an apolitical stance over various discussions on the death of George Floyd and the Black Lives Matter movement. This led 60 of its employees to quit and accept severance packages as per the company’s rule.