Guy Podjarny is the Founder of Snyk, a security platform that empowers software-driven businesses to develop fast and stay secure. Prior to Snyk, Guy founded Blaze which was acquired by Akamai and became CTO. We talked through the topic of acquisition ā the sale, the merge, the learnings, and why Guy might not be planning for Snyk to be acquired anytime soon. We started the conversation with Snykās recent raise of $150 million dollars.
Matched from the episode's transcript š
Guy Podjarny: Iām even gonna talk about this a little bit in the context of the Akamai acquisition of Blaze. At a high level, what happens is big companies - every company; we do this now at Snyk as well - increasing (once again) to a certain size, you start tiering the employees in terms of seniority. You want to do this because the market operates this way, and that allows you to get salary benchmarks across different companies of a certain sizeā¦
So if youāre a smaller company, you might have five tiers; you might have a junior person, and you kind of progress up to your top-tier individual contributor, you might have individual contributor and manager tiers, and they would somewhat overlap⦠But you tier somehow. Now, because itās different people, different roles, different salaries, very different, each of these tiers does have typically a fairly broad salary range, and other sort of compensation bits⦠But there are other pieces that are attached to it. And moving from tier to tier is a bigger deal than getting your salary adjusted within the tier.
Larger companies - thereās a magic number of ten, if you look at IBM, and I think Google is like that⦠Generally, thereās these ten tiers. Tech roles are oftentimes ā the minimum is like a four, and maybe one and two are the temp receptionist or janitorial roles, things that are a little bit outside the technology operation of the company⦠But then within those ten tiers ā and then you have executives, and executives is a little bit of a different tier.
So when a big company buys a small company, you have these things - you have VPs, you have directors⦠A VP in a company of 20 is very different than a VP in a company of 20,000. Itās not the same type seniority that you expect in the scope of responsibility. So thereās a matching exercise that happens during the acquisition, of deciding āOkay, this person whoās a VP here, or is a director here - what are they? What is their real seniority?ā And thereās a paycheck element to it, and I think that got a lot of focus in early conversations⦠But thereās also an importance around your career trajectory, in terms of like that banding is very important.
[19:59] So if I was to try to condense this, so the guidance is, in the moment of acquisition, thatās not the most important thing. Youāre trying to figure out āWould your team have a good home? Whatās the responsibility of the team over time in the acquiring company? Would you be successful, would people be happy?ā And of course, thereās the financial terms of the deal itself⦠So this bit, of like when you look at the team, what tier theyāre in, like your comp - you think about the different peopleās comp⦠But the tiers are generally not as discussed. But itās just to say that the individuals, if you put them in a band, when theyāre kind of at the top end of that salary range, and they round it down, then itās harder for them ā once theyāre inside the company, itās harder for them to get bumped up to that next tier, that maybe it might have been earlier on.