When to hire a cto?
Most startups decide to make their first CTO hire during the seed stage. The main reason is because startups want to have enough time to share their vision and long-term plans to scale it over time.
As a member of the C-level executive team, a CTO is a high-level management role. They have a strong understanding of the business, are closely aligned with the company vision, and offer strategic guidance on how to utilize technology to achieve short and long-term organizational goals.
But in most cases, it's the CIO who oversees internal IT and its strategic value to the business, while the CTO stays on top of emerging technologies and creates policies and procedures that leverage technology to improve products and services delivered to customers.
Percentile | Salary | Location |
---|---|---|
25th Percentile Chief Technology Officer Salary | $216,933 | US |
50th Percentile Chief Technology Officer Salary | $258,676 | US |
75th Percentile Chief Technology Officer Salary | $302,548 | US |
90th Percentile Chief Technology Officer Salary | $342,490 | US |
Every company needs such an individual—which is why we believe that every company needs a chief technology officer (CTO).
CTOs are responsible for hiring and managing teams of developers and helping them complete projects effectively. The foundation of a successful startup is the quality of the people on a team, which means that it's essential for a CTO to be involved in the hiring process.
- Be clear about your requirements. ...
- Go to places where you're likely to find good technical talent. ...
- Look for developers at just below the CTO level at startups similar to yours. ...
- Utilise the power of the internet. ...
- Pitch for the position. ...
- Ensure that you have a technical advisor before a CTO.
Startup financial advisor David Ehrenberg suggests that 5 to 10 percent is a fair equity stake for CEOs who join the company later. Research by SaaStr backs up this suggestion. The average founder/CEO holds roughly 14 percent equity at the company's IPO, while an outside CEO holds an average of 6 to 8 percent.
Chief Technology Officer-as-a-Service (CTO-as-a-Service) enables Small and Medium sized Enterprises (SMEs) to self-assess their digital readiness and needs at any time and from anywhere, access market-proven and cost-effective digital solutions, as well as engage digital consultants for in-depth advisory and project ...
CTO is an executive level position in a company who usually reports to a CIO or CEO. Most larger corporations need two technology executives, CIO, and CTO, while smaller companies have one of these two roles.
Does CTO report to CEO?
The CTO usually reports directly to a company's chief information officer (CIO), but may also report to the chief executive officer (CEO) of the firm.
- Develop a Technical Vision for the Organization. ...
- Focus on Creating Company's Digital Business Strategies. ...
- Ensure Seamless Technology Operations. ...
- Provide Leadership to Innovation Managers and Other Professionals. ...
- Support as Chief Operating Officer of IT.
CTOs want a tech salary and a fair amount of equity. Co-founders—be ready to part with a sizable amount of equity (up to 50%).
- 2021 Update:
- Rasmus Norling and Poly Shield Technologies. Rasmus Norling served as CTO/CEO for Poly Shield Technologies and made a cool $81,845,000. ...
- Michael Schroepfer and Facebook. ...
- Neville R. ...
- Kevin L. ...
- Cadir B. ...
- Peng Xiao and MicroStrategy.
If you're taking a market salary, you're an employee, not a co-founder, and 10% is very generous. In my world, the non-founder equity pool is 20% max, spread out over all the non-founder employees. If you're not taking a market salary, that's a different discussion.
Because of the growing tech industry, most companies do need both a CTO and a CIO. As previously outlined, CTOs and CIOs both have full plates of responsibilities and are essential to most tech businesses. Computer Weekly has another notion: a hybrid CIO. In some companies, the CIO acts as the CTO.
How to Use LinkedIn to Find a Technical Cofounder/CTO For Your ...
Finding a technical advisor
Often, you can reach out to strong technical leaders (CTOs usually) at other startups. Pitch them on your idea, let them know why you need their help. A genuine interest in cultivating the best technical operation you can goes a long way towards making us want to help you.
- Startup School. Startup School is a project of Y Combinator that offers free online training to startup founders. ...
- CoFoundersLab. CoFoundersLab claims to be the world's largest network of entrepreneurs. ...
- StartHawk. ...
- FoundersList. ...
- Indie Hackers. ...
- Reddit. ...
- LinkedIn.
The VP of Engineering is often an executive leadership position, and generally reports either to the CEO (70% of the time) or CTO (30% of the time).
Who decides startup CEO salary?
We analyzed the pay of over 250 startups - and the average startup CEO pay is $146,000, up 5% from the prior year. Startup CEO's pay varies by industry and the amount of venture capital funding the company has raised, with companies that are more highly funded earning a higher salary.
Position | Median Total Direct Compensation for All Respondents | Percent of Positions Held by Family Members by Revenue |
---|---|---|
Less than $50M | ||
Chief Executive Officer | $ 425,000 | 89% |
President | $ 350,000 | 80% |
Chief Legal Officer | $ 300,000 | 33% |
Chief Technology Officer as-a-Service (CTO-as-a-Service) provides quick access to resources and expertise needed on your digitalisation journey. “I do not know where to start” Answer a few questions to understand your digital readiness. Check my digital readiness. “I know my business needs”
A CTO (Chief Technology Officer) is the highest technology executive position within a company. The CTO oversees all overarching technology infrastructure while reporting directly to the CEO. The VP of Engineering, however, primarily deals with the management of development teams and preparing and optimizing budgets.
...
CEO and CTO : United By A Different Language.
The CEO Focus | The CTO Focus |
---|---|
Big on sales and strategy / Low on technology | Big on technology / Low on sales and finance |
The CIO tends to work with business leaders to optimize the company's operating model, while the CTO is more focused on the company's relationship with markets and customers. As a result, the common boundary that is drawn is that CIOs are focused on internal constraints and CTOs on external constraints.
Knowledge of technologies is not all you need to become a CTO. Communication and business knowledge are also important. These degrees can help you develop a variety of transferable skills.
Q: Is 1% the standard equity offer? 1% may make sense for an employee joining after a Series A financing, but do not make the mistake of thinking that an early-stage employee is the same as a post-Series A employee. First, your ownership percentage will be significantly diluted at the Series A financing.
How much does a CTO Startup make in California? As of Aug 3, 2022, the average annual pay for a CTO Startup in California is $149,519 a year. Just in case you need a simple salary calculator, that works out to be approximately $71.88 an hour. This is the equivalent of $2,875/week or $12,460/month.
Salary: the cash component of your offer should be about covering your necessities. You should have what you need to pay your bills and not stress out about getting by. Founders will understand your need — they never want you to suffer. Equity: anything beyond your cash baseline will typically be offered in equity.
How many hours does a CTO work?
That means forgetting downtime. Discipline and dedication to their craft allows for little mental time off for dedicated CTOs. As CTO of Dow Jones, Godfrey works 75 to 80 hours a week. Even when away from the office, he's not really away; that's part of his work ethic.
People with the job title CTO (Chief Technology Officer) make the most at companies with 501-1,000 employees, earning $286,262 on average.
The average Google CTO earns an estimated $216,172 annually. Google's CTO compensation is $5,601 less than the US average for a CTO.
Steinberg recommends establishing a pool of about 10% for early key hires and 10% for future employees. But relying on rules of thumb alone can be dangerous, as every company has different cash and talent requirements. More important, Steinberg says, is understanding your hiring needs.
On average seed startups will issue from 2% to 8% of stock options (from the fully diluted shares). If a CTO is needed, he may get 1% to 4%. Other employees will typically split the rest, adjusted for experience, seniority, needs of the company, and skillset. You typically can ask for 0.25% to 2.0%.
Each element's weight is then multiplied by the ranked level of the founder and added up to indicate the founder's equity split. For example, founder 1 has a ranking of 10 for Ideas, meaning that he contributed the most to this. We multiply 10 by the weight of 7 to get 70 points.
- Step 1: Earn a Bachelor's Degree. ...
- Step 2: Gain On-the-Job Experience. ...
- Technical Skills. ...
- Business and Management Skills. ...
- Step 3: Earn a Master's Degree (Optional) ...
- CTO Salaries and Job Outlook. ...
- The Importance of Vision.
A chief technology officer (CTO) is the executive in charge of an organization's technology intuitive and research and development (R&D). The CTO evaluates an organization's immediate and long-term needs to make the best monetary investments and internal resource commitments to achieve company objectives.
They should hold a senior executive role, and report directly to the CEO. It is a common anti-pattern to have the CTO report to the CFO (Chief Financial Officer) or CMO (Chief Marketing Officer).
The CIO tends to work with business leaders to optimize the company's operating model, while the CTO is more focused on the company's relationship with markets and customers. As a result, the common boundary that is drawn is that CIOs are focused on internal constraints and CTOs on external constraints.
Does CTO report to CEO?
The CTO usually reports directly to a company's chief information officer (CIO), but may also report to the chief executive officer (CEO) of the firm.
The average age of an employed chief technology officer is 52 years old. The most common ethnicity of chief technology officers is White (81.2%), followed by Hispanic or Latino (7.0%) and Asian (6.8%).
Chief Technology Officer (CTO) role is one of the most after-sought careers in the IT industry. CTO is an executive level position in a company who usually reports to a CIO or CEO. Most larger corporations need two technology executives, CIO, and CTO, while smaller companies have one of these two roles.
CIO or CTO roles that report to the CEO are more likely to attract the best candidates due to the assumed seniority that comes from that reporting line, and because the best technology leaders combine deep technical skills with strong business acumen.
1. CIO reporting to the CEO. “In the eyes of the CIO talent market, reporting to the CEO is the most desirable.” This is a clear sign that the company values IT as a business enabler, says Larry Bonfante, veteran CIO and founder of executive coaching and consulting practice CIO Bench Coach.
Sometimes the CTO is hired at the same level as the CIO. Other times he is hired by and reports to the CIO. In either case, the CTO is expected to tend to long-term development of the information technology infrastructure and often to oversee computer and network operations.
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