What is a CTO
A CTO provides strategic technology leadership to help organizations meet their goals. Learn more about a CTO’s responsibilities and how to hire a CTO.
April 14th, 2025
A CTO is the highest-ranking technology leader in an organization, responsible for managing IT operations and initiatives to drive growth. That means they can be responsible for developing overall technology strategies as well as managing day-to-day tasks for IT teams across the organization.
What does CTO stand for?
CTO stands for "chief technology officer."
What does a CTO do, exactly?
CTOs weren't always a must-have in the C-suite. In fact, in the scheme of things, "CTO" is one of the newer executive titles to hit the world of business, having emerged in the 1990s during the dot-com boom. Today, CTOs are often a necessity and they can be a make-or-break hire for many organizations. That's because they're responsible for the technology that makes those companies run---and the digital transformation that keeps them competitive in ever-changing markets.
In fact, now that so much business is conducted through and founded on tech platforms, CTOs can be just as critical to long-term success as CEOs and CFOs
What services does a CTO provide?
Since most companies don't have the exact same tech stack (we think...), no CTO will provide the exact same services for each organization. After all, each company will have its own IT needs--- from updating software and hiring next-level engineers to implementing new platforms for AI and automation.
In general, however, CTOs should be able to:
- Develop technology strategies: They can build and execute technology initiatives and align them with business goals.
- Lead and manage teams: CTOs can develop and guide teams of software developers, engineers, and data scientists to increase productivity and outcomes.
- Drive innovation: They can lead research and development initiatives, evaluating new technologies and recommending solutions for a competitive edge.
- Oversee IT infrastructure: CTOs can make critical decisions about systems architecture and network infrastructure to ensure platforms run smoothly.
- Improve cybersecurity and compliance: As regulations and security threats evolve, CTOs are there to put the right protocols and compliance standards to keep organizations---and their customers---protected.
What are the most important CTO skills?
CTOs have the tough job of being both emotionally intelligent leaders and technologically competent strategists. Whether they're updating systems to meet compliance regulations or leading IT teams through organizational changes, they need the skills and experience to back up their decisions.
That's where these core CTO competencies come into play:
- Technical skills: No surprise here. CTOs should have advanced knowledge of programming languages, cloud computing, infrastructure architecture, and cybersecurity.
- Leadership skills: CTOs must often motivate employees and guide teams through new technological processes.
- Strategic thinking skills: Always looking ahead, CTOs can develop technological roadmaps that align with business goals and anticipate future needs.
- Communication skills: CTOs need to translate complex technical concepts to other executives and team managers, ensuring they have the tools they need to succeed.
- Problem-solving skills: CTOs should be able to analyze complex issues and identify the best solutions for long-term growth.
What's the difference between a CTO and a CIO?
The difference between a CTO and CIO lies in two letters: I and T. Literally and, well, somewhat figuratively.
While both have a heavy hand in managing an organization's IT strategy, they do so in different ways and often with different goals. A CIO, for instance, is generally responsible for steering and overseeing internal IT processes, like streamlining systems and enhancing security. Meanwhile a CTO usually leads the charge of developing products and technologies for customers and driving external innovation.
Who does a CTO report to?
While a CTO may be the top of the technology food chain, they still need to report to other executives and stakeholders to keep strategies aligned. For instance, a CTO might report directly to the chief executive officer (CEO), chief operating officer (COO), chief finance officer (CFO), or CIO, depending on their organization's hierarchy.
Who reports to a CTO?
Since the CTO is in charge of overseeing all IT strategies and processes, they might have various direct reports, including engineering managers and DevOps leaders. Depending on how a company's C-suite is structured, other executives like the CIO might also report to the CTO.
How does someone become a CTO?
There's no simple or standard algorithm for becoming a CTO. Each technology leader carves out their own path to the C-suite with years of academic and on-the-ground experience.
Still, if we were to map out a general pathway for the journey from amateaur tech enthusiast to verified CTO, it might include:
- Educational background: CTOs typically have at least a bachelor's degree in computer science, software development, information technology, or a related field to build their foundational knowledge. Going further, some CTOs complete advanced degrees like an MBA or master's in technology management or cybersecurity to build their business and leadership skills.
- Professional experience: CTOs generally have 10-15 years of hands-on technical experience, starting in roles like DevOps engineer and JavaScript developer, and progressing to leadership and management roles. Some professionals might even start their own companies or develop their own IT products to cut their teeth in the field and prove their value.
- Certifications: CTOs might become a Certified Information Systems Security Professional (CISSP) or Certified Chief Information Security Officer (CCISO) to build out specific skills and remain competitive in their industry.
What is the difference between a CTO and a fractional CTO?
Not ready to bring on another brand-new, salaried executive? The good news is there's a sweet spot between full-time and no-time. And it's called fractional.
A fractional CTO is an experienced technology leader who provides the same services as a full-time CTO but on a part-time or contractual basis. In many cases, fractional CTOs are former full-time CTOs who don't want to be held down by one company. So now they use their vast knowledge and expertise to apply their skills to organizations across industries.
How do I hire a full-time CTO?
Hiring a full-time CTO can almost be a full-time job itself---taking several months or longer to vet candidates, get stakeholders to agree, and complete a complex onboarding process. By the time you finish hiring that new executive, your organization might've gone through many different changes, and your tech stack might even be unrecognizable.
That's because, to bring on a full-time IT executive, you usually have to:
- Define your business objectives: Clearly identify how technology will amplify your business (streamlining operations, scaling products, entering new markets) and determine what you need from your CTO.
- Craft a compelling job description: Include a company overview, detailed responsibilities, required experience and skills, and salary range to attract the right candidates.
- Find qualified candidates: Use all of the resources at your disposal, like internal promotions, network referrals, executive talent platforms to build a strong candidate pool.
- Conduct thorough interviews: Sit candidates down with various stakeholders to gauge their leadership experience and cultural fit with the organization.
- Launch technical assessments: Evaluate each candidate's technical skills with rigorous tests and sample projects.
- Make a competitive offer: Especially if you're sourcing from a competitive talent pool, offer an enticing compensation package to reel in your preferred candidate.
- Complete onboarding: Finally, get your hire up to speed with your organization's internal processes, standards, and systems so they can finish their training and finally get to work.
How long does it take to hire a CTO?
Hiring a CTO typically takes 3-6 months, depending on many different factors like how rigorous your interview process is and what the talent pool looks like. While that may not seem like long in the lifetime of a business, it's basically equivalent to 3-6 years in the world of technology. That means, by the time you finalize your CTO, new tools, market trends, and business needs could have emerged, leaving your new hire to play catch up.
How much does it cost to hire a CTO?
A full-time CTO salary typically ranges from $260,000 to $466,000, with the average falling at $348,000. Of course, CTO salaries can vary greatly depending on each professional's skills, experience, industry, and location. And remember that, along with their base pay, full-time execs like CTOs might receive healthcare benefits, bonuses, stock options, severance packages, and reimbursement for relocation expenses.
Why should I hire a fractional CTO?
Fractional CTOs can change the game for companies at many different stages of growth and transformation. Whether you're a startup looking to build out your engineering team or a mature company in need of new innovative strategies, fractional CTOs have the tools to help. And they can do it at a much more affordable cost than their full-time counterparts. That means no need to shell out a full-time salary, benefits, bonuses, or relocation fees needed.
On top of providing those cost savings, fractional CTOs have the flexibility to scale their involvement as needed, so you only pay for the time or projects they deliver. And, since they're not tied to one company, they bring their vast expertise and broad portfolios to guide your organization with the latest technological insights and market trends.
So, are you ready to take the leap and Go Fractional? Learn more about how to hire a fractional CTO for your business.
