After leading $20 billion Figma deal, Adobe’s David Wadhwani is in prime spot to be next CEO
David Wadhwani, president of Adobe’s Digital Media unit, speaks at Adobe’s Max conference in Los Angeles in October 2022.
Adobe
In September 2009, with the stock market still in the doldrums from the Great Recession, Adobe announced plans to spend $1.8 billion for marketing software vendor Omniture, its second-biggest acquisition ever at the time.
Prior to the deal getting announced, Adobe CEO Shantanu Narayen said at a meeting that he’s “always trying to not waste a good crisis,” according to the recollection of John Mellor, who was executive vice president at Omniture and stayed on at Adobe for almost 10 more years.
There’s a similarly opportunistic sentiment in the air today. With over three-quarters of 2022 in the books, Adobe’s stock is down 43% this year and on pace for its worst year since 2008, the depths of the financial crisis. This time, the company faces an economic downturn highlighted by soaring inflation.
Last month, Adobe agreed to pay $20 billion for Figma, the largest takeover of a private software company and a sum more than four times greater than what Adobe had ever spent in an acquisition. While Narayen is still CEO, he’s not the person who spearheaded this deal. That distinction belongs to the president of Adobe’s sprawling digital media business, David Wadhwani, according to people familiar with the transaction who asked not to be named because the details were private.
Wadhwani, 51, has spent more than a decade at Adobe over two separate stints, rejoining the company in mid-2021 after six years in other Silicon Valley executive and investing roles. Wadhwani, Adobe’s third highest-paid executive after Narayen, 59, and finance chief Dan Durn, is in the driver’s seat to become the next CEO, a position strengthened internally by the Figma deal, some people close to Adobe said. A former executive told CNBC that everyone is wondering when Wadhwani will get the promotion.
In January, Wadhwani and Anil Chakravarthy, the head of Adobe’s marketing software business, were each named as presidents of the company, a title Narayen had held since 2005. Chakravarthy joined Adobe in 2020 after serving four years as CEO of Informatica.
Some sources close to the company said Wadhwani and Chakravarthy are both strong contenders but cautioned that Narayen isn’t leaving anytime soon. The business Wadhwani oversees is roughly three times the size as Chakravarthy’s in terms of revenue.
For Wadhwani, Figma represents a risky bet on growth at a time when Wall Street is telling tech companies to tighten their belts and preserve cash. Assuming the deal closes, Adobe is paying about 50 times annual recurring revenue, and a price equal to double Figma’s private valuation last year, even with cloud stocks broadly down by more than half in the past 12 months. At the time of the announcement, the purchase price amounted to about 12% of Adobe’s market cap, compared to almost 10% for Omniture 13 years ago.
Cloud stocks and Adobe past year
CNBC
Figma founder and CEO Dylan Field will report to Wadhwani. Brad Rencher, former head of Adobe’s marketing software group, said Wadhwani’s elevated status became abundantly clear to him when he first read of the acquisition.
“I was like, OK, David was the sponsor. He was the one standing up and doing it,” said Rencher, who’s now CEO of BambooHR, a startup in Utah. A move that big doesn’t happen without the CEO’s support, Rencher said.
Narayen told CNBC’s Jon Fortt last month that he and Field had held “multiple conversations” over the years. Field said at a conference recently that Adobe first reached out to Figma in 2012, days after he announced the startup. But Adobe waited a decade to pounce, giving Figma time to show that it could succeed selling its software inside large companies such as Microsoft.
The make-or-break bet
In his 15-year tenure as CEO, Narayen hasn’t been shy about dealmaking, just at a smaller size. He orchestrated several billion-dollar-plus deals, including Omniture. The biggest prior to Figma was marketing automation software provider Marketo, which Adobe bought for $4.75 billion in 2018.
Figma is different. It shows Adobe’s willingness to pay top dollar for a trendy asset and let it run independently, rather than just buying companies and integrating their capabilities into existing products. And it might be Wadhwani’s make-or-break opportunity to prove he should be CEO of the fourth-biggest U.S. business software company by market cap.
Among past and current colleagues, Wadhwani is known to be unnervingly still in meetings, speaking in a slow and measured manner and often wrapping up by summarizing the three most critical points that were discussed. Rencher said there’s a clear similarity to his boss.
“He’s made in Shantanu’s image,” Rencher said.
Still, he can become passionate and animated. Rencher recalls a company offsite for executives a little over a decade ago at a spa resort in Carmel Valley, California, about two hours south of Adobe’s headquarters in San Jose. There was an icebreaker to try and ease the executives into conversation. But Wadhwani was ready to get down to business.
“We’ve got to change something or we’re going to be in trouble,” Wadhwani said, according to Rencher’s memory of the event.
Adobe said Wadhwani wasn’t available for an interview and the company declined to comment on succession planning.
Wadhwani is said to be a dedicated family man, with a wife, two daughters and a dog, though he allows himself one indulgence. When he travels on business, he insists on eating McDonald’s at airports. In particular, he loves the French fries, a former colleague said.
At Adobe, Wadhwani has been at the center of one of the most important shifts in the company’s 39-year history: the move from perpetual licenses to subscriptions. When Adobe revealed the grand plan for a new business model to analysts in 2011, Wadhwani was tasked with announcing the prices.
“We believe that over the course of the next few years as a result of this, we’ll attract over 800,000 new users — new incremental users to our Creative Suite — and do it in a way that’s good for the customer and good for Adobe,” Wadhwani said.
Revenue growth slowed and eventually declined as Adobe made its strategic and technological changes. But each quarter, hundreds of thousands more people signed up for Creative Cloud, a bundled subscription offering of key Adobe products such as Photoshop, Illustrator and Premiere Pro.
Shantanu Narayen, CEO, Adobe
Mark Neuling | CNBC
The revenue became more predictable and less closely associated with product releases. Investors responded by pushing the stock price above the $50 mark in late 2013 for the first time. It kept rising, and by 2016, nearly 7 million people were subscribing to Creative Cloud. In all, the stock price soared 233% over those four and a half years, compared with a 67% rise for the S&P 500.
Prior to the Creative Cloud launch, executives discussed the vision at an executive meeting at a lodge in Sausalito, California, across the Golden Gate Bridge from San Francisco.
It wasn’t a universally popular idea to bet the company on a new revenue model that was just starting to gain mass adoption in software. But Wadhwani spoke up in the middle of a disagreement and made clear that he saw real value in the effort. He showed the group early drawings of the product from company designers, said Michael Gough, a former Adobe vice president, who was in attendance.
“He was the one that was sort of rallying people to take it seriously,” Gough said. “Let’s talk about what would we actually do. What are we missing from the stack? What kind of resources would it take? He was taking the vision and creating a working plan, basically, and getting people to at least talk about the possibility of doing it.”
Jumping to a startup
By 2015, the subscription business was humming. Adobe significantly outperformed its target for paid Creative Cloud subscriptions. In June of that year, Wadhwani presented for the first time on an Adobe quarterly earnings call with analysts.
Three months later, he resigned “to pursue a CEO opportunity,” as Adobe stated in a press release. The new gig was made public a couple weeks later, when data analytics startup AppDynamics said Wadhwani would be taking over for Jyoti Bansal, a star founder in the software industry and the Bay Area.
Wadhwani told colleagues when he left that he wanted to be a CEO, said a former Adobe employee. Internally, there was chatter that he’d come to see that he wouldn’t be the next CEO of Adobe, according to a former executive.
Bansal, who’d guided AppDynamics into the billion-dollar startup club, was resistant to the idea of bringing in an outside CEO, said Steve Harrick, a partner at Institutional Venture Partners, an early backer of the company. Wadhwani eventually won over Bansal, who didn’t respond to a request for comment.
Harrick said that Wadhwani would frequently follow up with him after board meetings that ended without resolution on important matters. As CEO, Wadhwani pushed for engineers to build software in-house to broaden its offerings to existing customers, Harrick said. He also guided the company to become more dependent on revenue from subscriptions, rather than from more traditional licenses, an evolution he had advanced at Adobe.
Wadhwani was quickly poised to be CEO of a public company, after AppDynamics filed for its IPO in 2016. Early the following year, the company was set to raise almost $200 million and trade on the Nasdaq until Cisco showed up at the last minute and agreed to pay $3.7 billion for AppDynamics, more than double its expected valuation.
“They were not dual-tracking. They were not trying to be bought,” said Harrick. “They were earnestly saying, ‘This is a public company, that’s our marching orders.'”
Wadhwani stayed at Cisco after the acquisition. With Cisco trying to expand beyond networking and telecommunications gear and into software, Wadhwani advocated for the company to do more deals, suggesting it look at Datadog and HashiCorp, according to a former Cisco executive.
Neither deal happened. Datadog went public in September 2019, followed by HashiCorp in December 2021. However, Cisco did invest in HashiCorp in 2020.
Wadhwani left Cisco in October 2019 to join venture firm Greylock Partners, an early investor in AppDynamics. Less than two years later, he rejoined Adobe to again run the digital media business, but this time with bigger aspirations.
“He missed having a group of people around him where they were doing a lot of stuff together,” said Mona Akmal, co-founder and CEO of sales software startup Falkon, which was Wadhwani’s first Greylock investment.
Akmal told Wadhwani she wanted him to stick with her even as he pursued a job elsewhere. He’s continued attending every board meeting, she said.
Akmal said she wasn’t surprised to see Wadhwani return to an operating role, as she would joke with him that he was born to be a CEO. He’s tall and handsome, and his hair is always perfect, she said. She would ask about his hair, which has turned largely white, and question why he hasn’t dyed it.
“Are we doing the white hair because we want to look more executive?” she remembered asking him. “He would give you the smile, like, ‘Maybe.'”
Wadhwani rapidly got up to speed upon his return to San Jose. He’s participated in all three of Adobe’s quarterly earnings calls with analysts this year, providing details on Creative Cloud and, more recently, the Figma deal.
Internally, his targets included reaching creative professionals who are becoming more willing to collaborate, growing Document Cloud after the pandemic boosted e-signature rival DocuSign and popularizing Adobe Express to address the low end of the market, a former executive said.
‘Really important shift’
He’s been recruiting top talent, bringing back product veteran Deepa Subramaniam and technologist Ely Greenfield, who was technology chief at AppDynamics under Wadhwani.
At Adobe’s annual Max conference in Los Angeles this month, Wadhwani took the stage for the first time since 2014, and highlighted to analysts the opportunities to expand the digital media business.
He said the company was making “a really important shift and transition,” directing people who show interest in working with PDF files toward free services and then introducing them to premium capabilities. Wadhwani said the company has taken a page from its Document Cloud business and applied it to Creative Cloud, encouraging customers to pay for additional services.
At the event, Wadhwani said Figma’s popular design collaboration tools can accelerate Adobe’s effort to get more people engaging with documents in Adobe applications, thus widening the pool of potential customers. He invited Field to join him onstage and talk about Figma’s current projects.
Dylan Field, co-founder and CEO of Figma, speaks at the startup’s Config conference in San Francisco on May 10, 2022.
Figma
During a question-and-answer session later in the day, Wadhwani sat directly to the right of Narayen, who was flanked on the other side by Chakravarthy. Wadhwani and Narayen seemed to have coordinated their outfits. Both wore sneakers and sweaters over collared shirts.
Jay Vleeschhouwer, an analyst at Griffin Securities, asked the executives how Figma can help Adobe become more web oriented.
“I could probably literally spend hours on file formats versus object models in the web and what it takes,” Narayen said.
Then Wadhwani spoke up. Figma doesn’t depend on any one file format, he noted.
“One of the things that we’re really excited about,” Wadhwani said, is “working with Dylan and team to take those core capabilities, take the core platform that Dylan and team have built, and really reimagine what should the flows be.”
“Good news is David can also talk hours about the same issue,” Narayen said, referring to his file formats comment. Narayen smiled as the analysts and his fellow executives laughed.
WATCH: Adobe CEO Shantanu Narayen: We’re looking to build this company for the long run
Technology
Meet the 21-year-old helping coders use AI to cheat in Google and other tech job interviews
A person walks past the entrance to a Google building in Dublin, Feb. 15, 2023.
Artur Widak | Anadolu | Getty Images
After landing internship offers from Amazon, Meta and TikTok, computer science student Chungin “Roy” Lee has decided to move to San Francisco.
But he won’t be joining any of those companies.
Instead, Lee will be building his own startup that offers a peculiar service: helping software engineers use artificial intelligence to cheat in their technical job interviews.
“Everyone programs nowadays with the help of AI,” said Lee, a 21-year-old student at Columbia University, which has opened disciplinary proceedings against him, according to documents viewed by CNBC. A Columbia spokesperson said the university doesn’t comment on individual students.
“It doesn’t make sense to have an interview format that assumes you don’t have the use of AI,” Lee said.
Lee is at the forefront of a movement among professional coders who are exploiting the limitations of remote job interviews, popularized during the Covid pandemic, by using AI tools off camera to ensure they give hiring managers the best possible answers.
The hiring process that took hold in the work-from-home era involved candidates interviewing from behind a Zoom screen rather than traveling, sometimes across the country, for on-location interviews, where they could show their coding skills on dry-erase boards.
In late 2022 came the boom in generative AI, with the release of OpenAI’s ChatGPT. Since then, tech companies have laid off tens of thousands of programmers while touting the use of AI to write code. At Google, for example, more than 25% of new code is written by AI, CEO Sundar Pichai told investors in October.
The combination of rapid advancements in AI, mass layoffs of software developers, and a continuing world of remote and hybrid work has created a novel conundrum for recruiters.
The problem has become so prevalent that Pichai suggested during a Google town hall in February that his hiring managers consider returning to in-person job interviews.
Google isn’t the only tech company weighing that idea.
But engineers aren’t slowing down.
Lee has turned his cheating into a business. His company, Interview Coder, markets itself as a service that helps software developers cheat during job interviews. The internship offers that he landed are the proof he uses to show that his technology works.
AI assistants for virtual interviews can provide written code, make code improvements, and generate detailed explanations of results that candidates can read. The AI tools all work quickly, which is helpful for timed interviews.
Hiring managers are venting their frustrations on social media over the rise of AI cheaters, saying that those who get caught are eliminated from contention. Interviewers say they’re exhausted from having to discern whether candidates are using their own skills or relying on AI.
‘Invisible’ help
The cheating tools rely on generative AI models to provide software engineers with real-time answers to coding problems as they’re presented during interviews. The AI analyzes both written and oral questions and instantaneously generates code. The widgets can also provide the cheaters with explanations for the solutions that they can use in the interview.
The tools’ most valuable feature, however, might be their secrecy. Interview Coder is invisible to the interviewer.
While candidates are using technology to cheat, employers are observing their behavior during interviews to try to catch them. Interviewers have learned to look for eyes wandering to the side, the reflection of other apps visible on candidates’ glasses, and answers that sound rehearsed or don’t match questions, among other clues.
Perhaps the biggest tell is a simple “Hmm.”
Hiring managers said they’ve noticed that many candidates use the ubiquitous sound to buy themselves time while waiting for their AI tools to finish their work.
“I’ll hear a pause, then ‘Hmm,’ and all of a sudden, it’s the perfect answer,” said Anna Spearman, founder of Techie Staffing, an agency that helps companies fill technical roles. “There have also been instances where the code looked OK, but they couldn’t describe how they came to the conclusion.”
Henry Kirk, a software developer and co-founder of Studio.init in New York, said this type of cheating used to be easy to catch.
“But now it’s harder to detect,” said Kirk. He said the technology has gotten smart enough to present the answers in a place that doesn’t require users to move their eyes.
“The eye movement used to be the biggest giveaway,” Kirk said.
Interview Coder’s website says its virtual interview tool is immune to screen detection features that are available to companies on services such as Zoom and Google Meet. Lee markets his product as being webcam-proof.
When Kirk hosted a virtual coding challenge for an engineering job he was looking to fill in June, 700 people applied, he said. Kirk recorded the process of the first interview round. He was looking to see if any candidates were cheating in ways that included using results from large language models.
“More than 50% of them cheated,” he said.
AI cheating tools have improved so much over the last year that they’ve become nearly undetectable, experts said. Other than Lee’s Interview Coder, software engineers can also use programs such as Leetcode Wizard or ChatGPT.
Kirk said his startup is considering moving to in-person interviews, though he knows that potentially limits the talent pool.
“The problem is now I don’t trust the results as much,” Kirk said. “I don’t know what else to do other than on-site.”
Google CEO Sundar Pichai during an event at the Google for Startups Campus in Warsaw, Poland, Feb. 13, 2025.
Omar Marques | Anadolu | Getty Images
Back to the Googleplex
It’s become a big topic at Google, and one Pichai addressed in February at an internal town hall meeting, where executives read questions and comments that were submitted by employees and summarized by AI, according to an audio recording that was reviewed by CNBC.
One question asked of management was, “Can we get onsite job interviews back?”
“There are many email threads about this topic,” the question said. “If budget is constraint, can we get the candidates to an office or environment we can control?”
Pichai turned to Brian Ong, Google’s vice president of recruiting, who was joining through a virtual livestream.
“Brian, do we do hybrid?” Pichai asked.
Ong said candidates and Google employees have said they prefer virtual job interviews because scheduling a video call is easier than finding a time to meet in available conference rooms. The virtual interview process is about two weeks faster, he added.
He said interviewers are instructed to probe candidates on their answers as a way to decipher whether they actually know what they’re talking about.
“We definitely have more work to do to integrate how AI is now more prevalent in the interview process,” said Ong. He said his recruiting organization is working with Google’s software engineer steering committee to figure out how the company can refine its interviewing process.
“Given we all work hybrid, I think it’s worth thinking about some fraction of the interviews being in person,” Pichai responded. “I think it’ll help both the candidates understand Google’s culture and I think it’s good for both sides.”
Ong said it’s also an issue “all of our other competitor companies are looking at.”
A Google spokesperson declined to comment beyond what was said at the meeting.
Other companies have already shifted their hiring practices to account for AI cheating.
Deloitte reinstated in-person interviews for its U.K. graduate program, according to a September report.
Anthropic, the maker of AI chatbot Claude, issued new guidance in its job applications in February, asking candidates not to use AI assistants during the hiring process.
“While we encourage people to use AI systems during their role to help them work faster and more effectively, please do not use AI assistants during the application process,” the new policy says. “We want to understand your personal interest in Anthropic without mediation through an AI system, and we also want to evaluate your non-AI-assisted communication skills. Please indicate ‘Yes’ if you have read and agree.”
Amazon is also taking steps to combat AI cheating.
The company asks that candidates acknowledge that they won’t use unauthorized tools during the interview or assessment process, spokesperson Margaret Callahan told CNBC.
Chungin “Roy” Lee, a 21-year-old student at Columbia University, is the founder of Interview Coder, a startup that makes software to help computer programmers cheat in job interviews with the help of AI.
Courtesy of Chungin Lee
‘F*ck Leetcode’
If you visit InterviewCoder.co, the first thing that greets you is large gray type that reads “F*ck Leetcode.”
Leetcode is the program used by many tech companies to evaluate software engineers for technical roles. Tech companies such as Meta, Google and Amazon use it to keep tabs on the thousands of job applicants they evaluate.
“Every time I mention interviews, I get frustrated comments about Leetcode,” wrote Ryan Peterman, a software engineer at Meta, in a newsletter posted on Substack in December. Peterman said Leetcode problems are purposely designed to be much harder than what software engineers would do on the job. Leetcode is the best tool companies have to filter hundreds of applicants, Peterman wrote.
Coders said they hate Leetcode because it emphasizes algorithmic problem-solving and asks applicants to solve riddles and puzzles that seem irrelevant to the job, according to those CNBC spoke with as well as comments CNBC found from engineers across various social media platforms. Another downside is that it sometimes requires hours of work that may not result in a job offer or advancement, they said.
Leetcode served as Lee’s inspiration for building Interview Coder, he said. With the help of AI, he said, he created the service in less than a week.
“I thought I wanted to work at a big tech company and spent 600 hours practicing for Leetcode,” Lee said. “It made me miserable, and I almost stopped programming because of how much I didn’t like it.”
Lee’s social media posts are filled with comments from other programmers expressing similar frustrations.
“Legend,” several comments said in response to some of his X posts. Others said they enjoyed him “f—ing with big tech.”
Rival software Leetcode Wizard was also inspired by distaste for Leetcode.
Isabel De Vries, Leetcode Wizard’s head of marketing, told CNBC in a statement that Leetcode-style interviews fail to accurately measure engineering skills and fail to reflect actual daily engineering work.
“Our product originates from the same frustrations many of our users are having,” De Vries said.
Leetcode did not respond to CNBC’s request for comment.
Henry Kirk, a software developer and co-founder of Studio.init in New York, is considering moving job interviews to be on site in response to software engineers using AI to cheat in virtual interviews.
Photo by Krista Schlueter for Inc. Magazine
When Kirk, of Studio.init, posted on LinkedIn in February to vent about his frustrations with AI cheating, he received nearly 200 comments. But most argued that employers should allow candidates to use AI in the hiring process.
“Even the SAT lets you use a calculator,” said one comment. “I think you just make it harder to succeed on purpose when in the real world Google and gpt will always be at my fingertips.”
Lee promotes Interview Coder as being “invisible to all screen-recording softwares.” To prove its effectiveness, he recorded himself passing an Amazon interview and posted the video on YouTube. Amazon and the other companies that had made offers to Lee then rescinded them.
Lee got hundreds of comments praising the video, which YouTube removed after CNBC reached out to Amazon and Google for this story. YouTube cited a “copyright claim” by Amazon as the reason for removing the video.
“I as an interviewer am so annoyed by him but as a candidate also adore him,” former Meta staff engineer Yangshun Tay, co-founder of startup GreatFrontEnd, wrote in a LinkedIn post about Lee and his video. “Cheating isn’t right, but oh god I am so tired of these stupid algorithm interviews.”
After YouTube removed the video, Lee uploaded it once again.
Cheating as a service
Lee said he never planned to work at Amazon, Meta or TikTok. He said he wanted to show others just how easy it is to game Leetcode and force companies to find a better alternative.
And, he said, he’s making money in the process.
Interview Coder is available as a subscription for $60 a month. Lee said the company is on track to hit $1 million in annual recurring revenue by mid-May.
He recently hired the internet influencers who go by the name “Costco Guys” to make a video marketing his software.
“If you’re struggling to pass your Leetcode interviews and want to get a job at a big tech company, you’ve got to take a look at Interviewcoder.co to pass your interview,” the Costco Guys say in their video. “Because Interview Coder gets five big booms! Boom! Boom! Boom! Boom! Boooooom!”
Leetcode Wizard bills itself on its website as “The #1 AI-powered coding interview cheating app” and “The perfect tool for achieving a ‘Strong Hire’ result in any coding interview and landing your dream job at any FAANG company.” Leetcode Wizard charges 49 euros ($53) a month for a “Pro” subscription.
More than 16,000 people have used the app, and “several hundred” people have told Leetcode Wizard that they received offers thanks to the software, the company told CNBC.
“Our product will have succeeded once we can shut it down, when leetcode interviews are a thing of the past,” De Vries said.
Lee said he’s moving from New York to San Francisco in March to continue building Interview Coder and start working on his next company.
Kirk said he understands software engineers’ frustration with Leetcode and the tech industry. He’s had to use Leetcode numerous times throughout his career, and he was laid off by Google in 2023. He now wants to help out-of-work engineers get jobs.
But he remains worried that AI cheating will persist.
“We need to make sure they know their stuff because these tools still make mistakes,” Kirk said.
Half of companies currently use AI in the hiring process, and 68% will by the end of 2025, according to an October survey commissioned by ResumeBuilder.com.
Lee said that if companies want to bill themselves as AI-first, they should encourage its use by candidates.
Asked if he worries about software engineers losing the trust of the tech industry, Lee paused.
“Hmm,” he mumbled.
“My reaction to that is any company that is slow to respond to market changes will get hurt and that’s the fault of the company,” Lee said. “If there are better tools, then it’s their fault for not resorting to the better alternative to exist. I don’t feel guilty at all for not catering to a company’s inability to adapt.”
-
Sports2 years ago‘Storybook stuff’: Inside the night Bryce Harper sent the Phillies to the World Series
-
Sports11 months agoStory injured on diving stop, exits Red Sox game
-
Sports1 year agoGame 1 of WS least-watched in recorded history
-
Sports2 years agoMLB Rank 2023: Ranking baseball’s top 100 players
-
Sports3 years ago
Team Europe easily wins 4th straight Laver Cup
-
Environment2 years agoJapan and South Korea have a lot at stake in a free and open South China Sea
-
Environment2 years agoGame-changing Lectric XPedition launched as affordable electric cargo bike
-
Business2 years agoBank of England’s extraordinary response to government policy is almost unthinkable | Ed Conway