# The Role of a Chief Technology Officer (CTO)

![Chief Technology Officer (CTO)](https://www.investopedia.com/thmb/d6LTgq_zHRh6D7GdknsImeYDgX0=/1500x0/filters:no_upscale():max_bytes(150000):strip_icc()/chief-technology-officer_final-86a046c9f7614df499c32f8fc4b612cb.jpg)

*— Investopedia / Katie Kerpel*

> **Definition**
>
> A chief technology officer (CTO) is an executive responsible for a company's technology and engineering departments.

## What Is a Chief Technology Officer (CTO)?

A chief technology officer (CTO), also known as a chief technical officer, is a corporate executive who examines the technology needs of an organization and manages its investments in research and development.

The CTO may report directly to a company's chief information officer (CIO), but may also report to the [chief executive officer (CEO)](https://www.investopedia.com/terms/c/ceo.asp) of the firm.

### Key Takeaways

*   The average base salary of a CTO in 2025 is $309,710.  
    
*   A CTO may play one of several roles, including strategic planner, customer relations liaison, and overseer of infrastructure.
*   CTOs commonly have 15 years of IT experience, along with a graduate degree and targeted computer science certifications.

## CTO vs. CIO

A CTO commonly manages a company's technology and engineering departments. They develop policies and procedures for technology to enhance products and services for external customers. The CTO develops strategies to increase revenue and may perform [cost-benefit analysis](https://www.investopedia.com/terms/c/cost-benefitanalysis.asp) and return-on-investment analysis.

A [Chief Information Officer (CIO)](https://www.investopedia.com/terms/c/cio.asp) once performed dual roles as CIO and Chief Technology Officer. However, as technology advanced, the roles were split, and the CTO position was developed. The CTO has an outward-looking, strategic-planning role, while the CIO has a technology-focused, operational role.

Generally, a CIO is responsible for technologies that run the company's internal operations and business procedures. The CTO is responsible for technologies that boost business externally, implementing services and products that serve clients and customers.

> **Important**
>
> As technology integrates applications, processes, and the Internet of Things, CTOs must stay current on big data, AI, streaming analytics, and cloud technology to remain innovative and competitive.

## Types of Chief Technology Officers

*   **Infrastructure**: This type of CTO may oversee the data, security, maintenance, and network of a company and may implement the company's technical strategy. The CTO may also manage the company's technological roadmap. 
*   **Strategic Planner**: This CTO envisions how technology is used within the company and sets the future strategy. This CTO will implement new technologies within the company to ensure its success. 
*   **Consumer Liaison**: A CTO will act as a liaison between the customer and the business by taking on the responsibilities of customer relations, getting a grasp on the target market, and helping deliver IT projects to market.
*   **Thinker**: This kind of CTO helps set up the corporate strategy, creates business models, and partners with the CEO and other members of the company's senior staff.

## Career Path

As with most jobs in the information technology (IT) industry, the CTO requires a bachelor’s degree in a computer or information science field such as computer programming, software development, management information systems, applied mathematics, or [cybersecurity](https://www.investopedia.com/terms/c/cybersecurity.asp). Many firms may prefer their CTOs to have a master's degree or an [MBA](https://www.investopedia.com/terms/m/mba.asp).

CTOs often focus on products for customers, so sales and marketing courses are useful. Many engage in strategic corporate planning and business goals. On-the-job, practical experience is important. Many CTOs may have worked their way up the IT ranks at various organizations.

Industry certifications can significantly enhance an applicant's credentials. A Chief Technology Officer is a high-ranking, executive-level position in a company, part of the senior-level "[C-suite](https://www.investopedia.com/terms/c/c-suite.asp)." Applicants may need more than 15 years of experience in the IT field before being considered for a CTO job. In 2025, annual salaries for CTOs in the United States range from $256,657 to $366,202.

### $309,710

The average base salary of a CTO in 2025, according to Salary.com.

## Job Outlook

The U.S. [Bureau of Labor Statistics (BLS)](https://www.investopedia.com/terms/b/bls.asp) predicts that the job outlook for CTOs is expected to increase 15% between 2022 and 2032, much faster than the average 3% for all jobs.

The continued growth of business conducted over information systems and the role of cybersecurity are two main reasons for employment growth in this role. Increases in cybersecurity threats mean that implementing more robust security policies is critical for organizations that manage sensitive information.

## What Does a Chief Technology Officer Do?

A chief technology officer (CTO) is responsible for overseeing the development and dissemination of technology for external customers, vendors, and other clients to help improve and increase business. They may also handle internal IT operations if a company is small and doesn't have a chief information officer (CIO).

## When Did Companies Begin Hiring CTOs?

The CTO title was first developed at [dot-com](https://www.investopedia.com/terms/d/dotcom.asp) companies in the 1990s and then expanded to IT departments. The CTO role grew with the information technology (IT) industry, but also moved into e-commerce, healthcare, telecommunications, and government.

## How Has the Position of CTO Expanded Over Time?

The responsibilities and role of the CTO depend on the company. The rise of information technology (IT) and computers has increased the importance of the CTO role. Companies focusing on scientific and electronic products may employ experienced CTOs responsible for overseeing intellectual property.

## The Bottom Line

CTOs need a bachelor's degree in a computer-science-related field. They often earn master's degrees in computer science or mathematics, or a general MBA. CTOs may have at least 15 years of IT job experience. Along with technical expertise, they demonstrate leadership, decision-making, management, and business strategy skills.

> **Article Sources**
>
> 1.  Salary.com. "[Chief Technology Officer in the United States](https://www.salary.com/research/salary/benchmark/chief-technology-officer-salary)."
>     
> 2.  U.S. Bureau of Labor Statistics. "[Computer and Information Systems Managers Summary](https://www.bls.gov/ooh/management/computer-and-information-systems-managers.htm)."