Chief Technology Officer CTO: Definition, How to Become One, Average Salary

Woulfe says the Systecon North America team has been zeroing in on understanding and fulfilling the Department of Defense’s needs when it comes to digital transformation, digital engineering and digital sustainment practices. Woulfe is passionate about the predictive analytics tech that his company specializes in, and believes there is currently leadership in Washington and at the Pentagon that is serious about utilizing it on a mass scale. 2023 has offered a chance for Systecon to make previously theoretical concepts into tangible realities. More important to the role than in-depth technical knowledge of hardware and code might be the ability to leverage advanced technologies (AI, big data and machine learning, for example) to set a strategic course for a company. The role of a CTO is one for the curious—one who is able to take in new information, technology, practices and business needs and then create a stable foundation for growth and innovation. It may be the executive role requiring the most amount of openness and lifelong education, and it never gets old.

CTO’s might receive an average total compensation of £111,000 if they’ve worked for anywhere between 10 and 19 years. Meanwhile, CTO’s with more than two decades of experience in the position received an average wage of around £124,000. Ultimately, a team that is inclusive is likely to be more inclined to buy into the vision. And before they buy into the vision, workers need to be able to buy into the leader. CTOs shouldn’t forget that the whole team is looking at them and the standards and best practices they set will be followed.

Qualifications to Be a Chief Technology Officer

Yet, given that a lot of the business’s competitive advantage rests on whoever is hired, they should know what to expect from CTO’s. However, a lot of businesses fail to understand the CTO role, and it is often the least defined role in the C-Suite. The average CTO salary in the United States is $244,907, according to Salary.com.

This leaves the CIO to concentrate on more internally focused technology and systems. In simple terms, the Chief Technology Officer is the executive responsible for managing and driving value from technology within an organisation. As a result, CEOs and boards often don’t understand or confuse the CTO’s role when they are looking to hire one.

Chief Technology Officer (CTO)

So it is understandable that CTOs find the work more critical than ever, with higher reach and a greater demand placed on them for success. CTOs on average earn a salary of $163,309 per year, according to PayScale, a firm that provides a compensation platform to calculate compensation rates. Total compensation for these positions ranges from $89,000 to $294,000 per year. Organizations looking to hire a CTO should seek someone who is ambitious and bold, “someone who can shake the status quo, stay resilient, and turn technology into something useful for the organization,” Aksakal says. These traits can be demonstrated by earlier career choices and accomplishments. Most CTOs undergo training throughout their careers in IT departments, and they might also earn certifications in development, programming, database administration, or other related fields.

My business has a Summer School of Code program, which is an internship and mentoring course with a curriculum based on our tech stack. This helps us both take on new junior talent and give back experience to a wider community. Programs that encourage more talent in the industry help all companies. When you see your role as facilitating a conversation mediated by technology development and engineering processes, you can make a more powerful impact with every activity delivered with purpose.

The Role Of The CTO

They include patience and the ability to embrace change, live with ambiguity and work under pressure. Success comes not only from knowing technology but from having the ability to recognize and convey its impact. Get good at pattern recognition and embrace critical and comparative thinking. As VP and CTO of NTT DATA Services, Kris leads client innovation programs and the IT Strategy Consulting Practice.

If their role involved innovation they need to have strong engagement and influence with other senior executives. This CTO is responsible for creating the company’s digital business technology strategies, along with leading the teams that will architect the required digital platforms. Often, CTOs adopt this role in industries that have been heavily disrupted such as retail, technology, media, and banking. Depending on the size and focus of the company, the CTO position can overlap and interact with other senior technology roles such as the CIO (Chief Information Officer) or CDO (Chief Digital Officer). But often the CTO is the most senior role and reports directly to the CEO (Chief Executive Officer).

Step 3: Earn a Master’s Degree (Optional)

Nearly half of CIOs also identified the CTO as a role of increasing importance in the C-suite – behind the CFO and COO – while four in every ten of 3,000 CEOs recognised  the role of CTO as strategically important. According to IBM’s The CTO Revelation report, which polled 2,500 CTOs and 2,500 CIOs, 61% of CTOs saw themselves as the executive that will play the most crucial role, beyond the CEO, over the next three years. The journey to learning a department in an organization varies from professional to professional.

The CTO often reported to the chief information officer (CIO), which created confusion in IT circles about who did what, exactly. No matter the business, the CTO position is typically where the company’s technology strategy and vision is necessary to create or improve a company’s goods or services. Those who want to secure a position as a CTO must embrace challenge and change, be willing to put in the work, and have the will and stamina to climb the IT leadership ladder. This guide outlines the skills and qualifications required to be a CTO. If your goal is to become a chief technology officer, WGU can provide the relevant knowledge, skills, and IT degrees you’ll need to prepare.

Chief technology officer

Read on to indulge that inner strategist and get planning the next big step in your career. Insights on business strategy and culture, right to your cto responsibilities inbox.Part of the business.com network. A CTO must be a forward-thinking individual with excellent communication and organizational skills.

While there are no specific certifications geared to CTOs, individuals seeking a CTO role should also pursue certifications in areas such as project management, development, programming or database administration. Some CTOs are also responsible for managing research and development initiatives and overseeing intellectual property at their organizations. The CTO title has been in use for over 10 years, but there is still confusion about the role and how it differs from the CIO. The title first developed at dot-com companies in the 1990s and then expanded to IT departments. The CTO role became popular as the information technology (IT) industry grew, but it is also used in other industries such as e-commerce, healthcare, telecommunications, and government. The continued growth of business conducted over information systems is the main cause of employment growth in this role.

CTO Responsibilities & Roles

I’ve found that a great way to make this happen is to always hire people smarter than myself. My team members bring in the results, and I support them in getting what they need to do in line with what the business needs and is able to offer them in their execution. Identifying great people and supporting them are the skills and mindsets that grow great teams. I think it’s vital to take this acknowledgment that everyone holds a piece of the puzzle and apply it to conversations with other stakeholders. It’s particularly important for a well-rounded business that the CTO and chief people officer talk regularly about how tech is used to collaborate, foster inclusion and support diversity and equity.

• So, we’re seeing a lot of modernization efforts, but those modernization efforts need to be coupled with the same kind of sustainment analytics that we apply to the weapon systems themselves.
• CTOs and CIOs often work together to combine their technical and engineering knowledge for the benefit of the whole company.
• CTOs on average earn a salary of $163,309 per year, according to PayScale, a firm that provides a compensation platform to calculate compensation rates.
• However, the key difference is that the CIO role typically involves internal operations, while the CTO role focuses on external processes.
• This experience is crucial for developing the skills to lead an entire organization’s technology strategy.