Take the engineering re-leveling from principle to a concrete ladder - 13 levels down to 4 (open to a 5th), leadership down to Director and VP - and commit that no mapping ships without the direct report in the room

August 13, 2026 at 10:41 PMpeoplehigh

Situation

Across three 1:1s on Aug 13 (Nathan, Steve, Ryan) Peter walked each direct report through a spreadsheet he had shown nobody, collapsing roughly 13 engineering levels into Engineer / Senior / Principal / Distinguished, and collapsing his own leadership layer from directors, senior directors and head-of titles down to Director and VP. Nathan argued for a fifth level (Staff) to separate Jeremy from Sultan; Peter took it as reasonable without committing. Ryan was placed in the VP bucket and told so directly. Peter named two hard constraints: nobody gets a pay cut, and existing option grants cannot legally be reduced. Timeline given to Ryan: weeks, not months. Sequence: get Mariah bought into the framework first, then walk each org through its own mapping.

Reasoning

The 13 levels are not a cosmetic problem - they are the reason he cannot answer a compensation question. As long as a Director with no reports sits at the same nominal level as a Director running an org, there is no denominator against which to say a person is underpaid relative to peers. Peter said this plainly to Nathan: get to a smaller surface of titles, and then we can have a conversation much more easily about relative compensation numbers. The ladder is instrumentation for the comp and equity work, not an end in itself. He is also deliberately unreligious about the details - not religious about four versus five, do not care what you call the titles as long as they map to the level - because the thing he needs is a single scale, not a particular scale.

Additional Context

This is the third appearance of the leveling review (7/10 launched it, 7/30 established it lands as a conversation not a directive). What is new is that it is now a concrete artifact with named levels and named people mapped into them, and that it has an explicit dependency chain: Mariah first, then each direct report, then rollout.

Observed Evidence

Peter to Nathan: I got something like 13 different levels across all of engineering, which makes no sense. ... I have directors of engineering who do not have any direct reports. Peter to Ryan: I am just trying to knock it down to like four levels, and then I can have people stop pointing at each other saying, why is that person a different level than me. On constraints: There is nobody I am asking to cut pay on. And you cannot legally cut options.

Matching Patterns

62%
Purpose Is the Decision Procedure(restates the purpose of the artifact rather than debating its contents, unreligious about specifics, religious about the purpose)
48%
Three-Lever Talent Management(same category, framework-driven talent decision)

Confidence Breakdown

35/35
Evidence
28/30
Pattern
20/20
Source
15/15
Corroboration

Reasoning Depth Analysis

Org Signal:Levels are being taken back as a CTO-owned instrument rather than a per-manager negotiation. Telling Ryan his bucket before the framework is public signals that the process is not a threat.
Who Affected:Every engineer in the 60-person org, plus Mariah who owns the HR mechanics and Greg who owns the equity pool.
Precedent:Establishes that structural changes to titles arrive with the affected leader in the room rather than as an announcement - consistent with the 7/30 decision.
Consequences:Real. No-pay-cut and no-option-clawback are binding constraints, which means the correction is funded upward only and therefore costs money.
Timing:Now because the equity and comp review with Greg, Mariah and Bjorn is live and cannot be answered without a level scale underneath it.

Source

reflection

AI Confidence

98%

Related Context

🎥
Nathan <> Peter Weekly 1:1

fathom

I am religious that the number is not 13 when I am done. I am not super religious about four versus five at all. ... None of this will be done without you. You will be part of the mapping for your org.

🎥
Ryan <> Peter Weekly 1:1

fathom

I smashed those down to directors and VPs. And cards on the table, put you in the VP bucket. ... I want to get Mariah buy-in for the overall process, and then I will sit down with you and your team.

🎥
Steve <> Peter Weekly 1:1

fathom

Simplify Engineering 14+ levels to four to standardize titles and compensation. A collaborative effort with direct reports to finalize mappings.

Outcome

Greg ratified the ladder structure on Aug 24 and the VP convention was settled company-wide; names not yet mapped and Mariah not yet engaged

Rating: 4/5

Decision ID: dd7afba8-a37d-4382-a8ad-b3e81bb81c83