CTO vs VP Engineering: Key Differences & When to Hire Each Role

Here's the quick answer: A CTO focuses on technology strategy, innovation, and long-term vision, while a VP of Engineering focuses on execution, team management, and delivery. Think of it this way - the CTO decides what to build and why, the VP Engineering ensures it gets built efficiently.

But that's just scratching the surface. As your company grows, understanding when to hire each role (or whether you need both) can make the difference between scaling smoothly and hitting organizational chaos.

In this comprehensive guide, you'll learn exactly when your company needs a CTO, when you need a VP Engineering, how they work together, and the most common mistakes companies make when hiring for these critical roles.

Core Responsibilities: CTO vs VP Engineering

Let's break down what each role actually does day-to-day.

What Does a CTO Do?

The Chief Technology Officer owns the technology vision and strategy for the entire organization. They're thinking 12-24 months ahead, making big architectural decisions, and ensuring technology aligns with business goals.

Key CTO Responsibilities:

Technology Strategy & Vision: Define the long-term technology roadmap that supports business objectives
Architecture Decisions: Make high-level technical architecture choices (microservices vs monolith, cloud provider selection, build vs buy)
Innovation & R&D: Evaluate emerging technologies, run proof-of-concepts, identify competitive advantages through technology
External Representation: Present at conferences, engage with investors, build technical credibility for the company
Technical Due Diligence: Lead technical aspects of fundraising, M&A, and partnerships
Risk Management: Oversee security, compliance, technical debt, and infrastructure reliability
Team Strategy: Define hiring strategy, set engineering culture, make leadership appointments
Vendor & Partner Relations: Negotiate major technology contracts, build strategic technical partnerships
Product-Technology Alignment: Work closely with product leadership to ensure technical feasibility and innovation
Board & Investor Relations: Report on technology metrics, risks, and opportunities to executives and board

Time Allocation for Most CTOs:

30% - Strategic planning and architecture
25% - External representation and relationships
20% - Team leadership and culture
15% - Innovation and R&D
10% - Hands-on technical work (varies widely)

What Does a VP Engineering Do?

The VP of Engineering owns execution and delivery. They ensure the engineering team ships quality code on time, maintains high standards, and operates efficiently.

Key VP Engineering Responsibilities:

Team Management: Hire, develop, and retain engineering talent across all levels
Delivery & Execution: Ensure teams hit deadlines, maintain velocity, and deliver quality work
Process & Operations: Implement and optimize development processes (Agile, sprints, code review, testing)
Engineering Culture: Build and maintain team culture, values, and working norms
Performance Management: Conduct reviews, manage underperformance, create career development paths
Resource Allocation: Assign engineers to projects, balance workloads, manage competing priorities
Quality Assurance: Ensure code quality, testing standards, and technical excellence
Team Structure: Design team topology (squads, pods, platform teams), define roles and responsibilities
Metrics & Reporting: Track and report on engineering KPIs (velocity, quality, deployment frequency)
Cross-functional Collaboration: Work with product, design, QA, and other departments to ensure smooth delivery
Technical Standards: Establish coding standards, architectural patterns, and best practices
Capacity Planning: Forecast hiring needs, plan for scale, manage budgets
Incident Management: Oversee on-call rotations, post-mortems, reliability improvements

Time Allocation for Most VP Engineering:

40% - Team management and 1-on-1s
25% - Process optimization and operations
20% - Cross-functional collaboration
10% - Hiring and recruiting
5% - Hands-on technical work (mostly code reviews)

Role Comparison Table

Here's a side-by-side comparison to see the differences clearly:

Dimension	CTO	VP Engineering
Primary Focus	What to build, why to build it	How to build it, when it gets delivered
Time Horizon	12-24 months ahead	1-3 months ahead
Key Metric	Technology enables business outcomes	Engineering velocity and quality
Reports To	CEO, sometimes Board	CTO or CEO
Manages	Technology strategy, technical leaders	Engineering managers, individual contributors
External Focus	High (investors, partners, conferences)	Low to medium (recruiting, vendor management)
Hands-on Code	0-20% (highly variable)	0-10% (mostly code reviews)
Key Skills	Vision, architecture, business acumen	People management, process, execution
Success Metric	Technology drives competitive advantage	Team ships quality products on time
Typical Background	Senior architect, founding engineer, previous CTO	Engineering manager, director of engineering
Board Interaction	Regular (quarterly or monthly)	Rare (usually through CTO)
Budget Ownership	Full technology budget	Engineering team budget
Hiring Authority	Strategic hires (senior leaders)	All engineering hires
Crisis Response	Strategic pivot, architecture change	Process improvement, team restructuring

When Do You Need Each Role? Company Size Triggers

The need for these roles evolves as your company grows. Here's when each typically becomes critical.

0-5 Engineers: Founding Engineer or Technical Co-Founder

What You Need:

Someone who can code and make architectural decisions
No formal leadership structure needed yet
Often called "Head of Engineering" or "Lead Engineer"

Why Not CTO/VP Eng Yet: You're too small. Everyone needs to be hands-on building. The "CTO" title at this stage is usually just a founding technical co-founder who codes full-time.

Cost: $120K-$200K salary + 2-8% equity (founding team member)

6-15 Engineers: VP Engineering or Interim CTO

What You Need:

Someone to manage the team and establish processes
Usually your first VP Engineering hire
Or a fractional CTO to guide strategy while you scale

Why VP Engineering First: You have execution challenges. Engineers need clear direction, processes need to be established, and someone needs to do 1-on-1s and performance reviews.

Why Not Full-Time CTO Yet: A full-time strategic CTO is overkill. You need execution more than vision. A fractional CTO can provide strategic guidance 1-2 days/week while your VP Engineering handles day-to-day.

Cost:

VP Engineering: $180K-$280K + 0.5-2% equity
Fractional CTO: $8K-$15K/month (for strategic guidance)

Ready to explore fractional CTO support? See our pricing packages

15-30 Engineers: VP Engineering + Fractional or Full-Time CTO

What You Need:

VP Engineering managing day-to-day execution
CTO (fractional or full-time) providing strategic direction
Clear separation of strategy vs. execution

Why Both: Your challenges have diverged. You have execution complexity (multiple teams, competing priorities) AND strategic complexity (architecture decisions, technology stack evolution, technical debt).

The Split:

VP Engineering manages 3-5 engineering managers, runs sprint planning, handles HR issues
CTO (full-time or fractional) sets technical direction, represents tech to board, makes build-vs-buy decisions

Cost:

VP Engineering: $200K-$320K + 0.3-1.5% equity
Full-time CTO: $250K-$400K + 0.5-2% equity
Fractional CTO: $12K-$20K/month

30-50 Engineers: Both Roles, Full-Time

What You Need:

Full-time VP Engineering managing multiple engineering managers
Full-time CTO setting strategy and representing technology externally
Possibly multiple VPs (VP Platform, VP Product Engineering, etc.)

Why: You have enough complexity that both roles are more than full-time jobs. The CTO can't manage 30+ people AND do strategy. The VP Engineering can't execute AND think 18 months ahead.

Organizational Structure:

CEO
├── CTO
│   ├── VP Engineering
│   │   ├── Engineering Manager - Team A (5-8 engineers)
│   │   ├── Engineering Manager - Team B (5-8 engineers)
│   │   ├── Engineering Manager - Team C (5-8 engineers)
│   │   └── Engineering Manager - Team D (5-8 engineers)
│   ├── Director of Architecture
│   └── Director of Infrastructure/DevOps

Cost:

CTO: $280K-$450K + 0.5-2% equity
VP Engineering: $220K-$350K + 0.3-1% equity

50+ Engineers: Multiple VPs Reporting to CTO

What You Need:

CTO focused entirely on strategy, external representation, and leadership
Multiple VPs specializing in different areas
Directors and senior managers handling day-to-day execution

Common Structure:

CEO
├── CTO
│   ├── VP Product Engineering (20-30 engineers)
│   ├── VP Platform Engineering (15-20 engineers)
│   ├── VP Infrastructure (10-15 engineers)
│   ├── VP Quality & Security (8-12 engineers)
│   └── Chief Architect (staff/principal engineers)

Cost:

CTO: $300K-$500K+ + equity
Each VP: $220K-$380K + equity

Reporting Structure: Who Reports to Whom?

There are three common organizational models. Each has tradeoffs.

Model 1: VP Engineering Reports to CTO (Most Common)

Structure:

CEO → CTO → VP Engineering → Engineering Managers → Engineers

When This Works:

Company is technology-driven (SaaS, deep tech, infrastructure)
CTO has strong people management skills
Need tight alignment between strategy and execution
15+ engineers

Advantages:

Clear chain of command
Strategy and execution tightly coupled
CTO has full technology ownership
Easier decision-making

Disadvantages:

CTO can become a bottleneck
VP Engineering may feel like a "middle manager"
Less direct CEO involvement in engineering execution

Real Example: Stripe used this model for years. The CTO owned all of technology (strategy + execution), with VPs of Engineering handling different product areas (payments, treasury, etc.).

Model 2: CTO and VP Engineering Both Report to CEO (Peer Model)

Structure:

CEO
├── CTO (strategy, architecture, innovation)
└── VP Engineering (execution, team management, delivery)

When This Works:

Company has both strategic technology needs AND execution challenges
Strong CEO who can mediate between tech strategy and execution
30+ engineers
CTO is more visionary, less people-management focused

Advantages:

Clear separation of concerns
VP Engineering has direct CEO access
CTO can focus on external relationships and long-term strategy
Reduces single point of failure

Disadvantages:

Requires active CEO mediation
Potential for strategy/execution misalignment
Unclear who "owns" engineering

Real Example: Facebook used this model for years. The CTO (Mike Schroepfer) focused on AI, VR, and long-term research, while VP Engineering owned day-to-day product development.

Model 3: CTO Reports to CEO, No VP Engineering (Smaller Teams)

Structure:

CEO → CTO → Engineering Managers → Engineers

When This Works:

8-20 engineers
CTO is strong at both strategy AND people management
Company can't afford both roles yet
High-trust relationship between CEO and CTO

Advantages:

Simpler structure
Lower cost
Faster decisions
One person owns all of technology

Disadvantages:

CTO stretched thin
Risk of burnout
Execution or strategy suffers (usually execution)
Hard to scale past 20 engineers

Real Example: Most Series A startups use this model. The CTO wears both hats until the team grows to 20-30 engineers.

How CTO and VP Engineering Collaborate

When you have both roles, success depends on clear collaboration and boundaries.

Weekly Strategic Alignment

What It Looks Like:

60-minute weekly meeting between CTO and VP Engineering
Review: roadmap progress, technical decisions, team health, blockers
Align: upcoming sprints, hiring priorities, technical investments

Example Agenda:

Team metrics review (velocity, quality, incidents) - 10 min
Roadmap status and risks - 15 min
Technical decisions needing alignment - 15 min
Hiring and team planning - 10 min
Open issues and blockers - 10 min

Clear Decision-Making Rights

CTO Decides:

Technology stack and architecture choices
Build vs. buy decisions over $50K
Technical partnerships and vendor selection
R&D and innovation investments
Security and compliance strategy

VP Engineering Decides:

Development processes and methodologies
Team structure and engineering organization
Individual hiring decisions (with CTO input on senior roles)
Sprint planning and release schedules
Engineering tools and productivity investments under $50K

Joint Decisions:

Annual engineering budget
Senior engineering hires (Director+)
Major refactoring or technical debt initiatives
Technology vision and roadmap
Engineering culture and values

Complementary Strengths

The best CTO/VP Eng partnerships leverage complementary skills:

CTO Strength	VP Engineering Strength
Big-picture thinking	Attention to detail
External relationships	Internal team building
Technology innovation	Process optimization
Long-term vision	Short-term execution
Architecture design	Implementation quality
Risk assessment	Risk mitigation

Real Example: At Shopify, the CTO focused on long-term platform evolution and merchant-facing technology, while the VP Engineering focused on developer productivity, code quality, and team scaling. They met 3x/week to stay aligned.

When to Hire CTO First vs VP Engineering First

This is one of the most common questions from growing startups.

Hire VP Engineering First When:

Scenario 1: You Have Execution Problems

Missing deadlines consistently
Code quality is declining
Engineers unclear on priorities
No clear development process
High bug counts and production incidents

What VP Engineering Solves: Establishes processes, clarifies priorities, improves code quality, creates accountability.

Scenario 2: You're the Technical Founder

You're the CEO with strong technical background
You can set technology strategy yourself
You need someone to manage the team so you can focus on business

What VP Engineering Solves: Takes team management off your plate while you maintain strategic control.

Scenario 3: Your Technology Stack is Stable

Not making major architecture changes
Stack is modern and appropriate
Main challenge is executing faster
Team size: 6-20 engineers

Cost: $180K-$320K + equity vs. $250K-$400K+ for CTO

Hire CTO First (or Fractional CTO) When:

Scenario 1: You Have Strategic Technology Questions

Unsure about technology stack or architecture
Need to make major build-vs-buy decisions
Evaluating platform migrations or rewrites
Approaching technical due diligence for fundraising

What CTO Solves: Provides strategic direction, makes architecture decisions, represents tech to investors.

Scenario 2: You're a Non-Technical Founder

No engineering background yourself
Need someone to set technical direction
Need credibility with technical talent and investors
Team size: any (even 2-3 engineers benefit from strategic guidance)

What CTO Solves: Fills your technical knowledge gap, builds engineering organization from scratch.

Scenario 3: You're in a Deep Tech or Infrastructure Business

Technology IS the product (not just supporting a business)
Competitive advantage comes from technical innovation
Need thought leadership and external technical credibility

What CTO Solves: Drives innovation, builds technical brand, attracts top engineering talent.

Cost for Fractional: $8K-$20K/month (vs. $250K-$400K+ full-time)

Explore fractional CTO options for strategic guidance without full-time cost

The Fractional CTO Bridge Strategy

Many companies use a fractional CTO as a bridge while hiring VP Engineering:

Phase 1 (Months 1-6): Fractional CTO Only

Sets technology strategy and architecture
Establishes engineering processes
Helps recruit VP Engineering
Cost: $10K-$15K/month

Phase 2 (Months 6-18): Fractional CTO + VP Engineering

Fractional CTO provides strategic oversight (1-2 days/week)
VP Engineering handles execution (full-time)
Cost: $12K/month fractional + $220K-$280K VP salary

Phase 3 (Months 18+): Decision Point

Convert fractional CTO to full-time, or
Continue fractional indefinitely (many companies do this), or
VP Engineering takes on more strategic responsibilities

Total Cost Savings: $180K-$250K/year vs. hiring full-time CTO immediately

Can One Person Do Both Jobs?

Short answer: Yes, but only temporarily and only at smaller scale.

When One Person Works (Sweet Spot: 8-15 Engineers)

Requirements:

Engineering team under 15 people
Technology stack is relatively stable
Company stage: Seed to Series A
The person has both strategic AND people management skills (rare)

What This Looks Like:

Title: CTO or VP Engineering (doesn't matter much)
Splits time 50/50 between strategy and execution
Has 1-2 strong engineering leads who handle day-to-day
Works 60+ hours/week (not sustainable long-term)

Red Flags It's Not Working:

Constantly missing 1-on-1s with engineers
Strategy decisions getting delayed
Burnout and stress levels high
Team complaints about lack of direction OR lack of support

When You Need to Split the Role (15+ Engineers)

Why 15 Engineers Is the Breaking Point:

People Management Math:

15 engineers = 3-4 engineering managers
Good management requires 30 minutes/week per direct report minimum
4 managers × 30 min = 2 hours/week just for 1-on-1s with managers
Plus: hiring, performance reviews, career development, conflict resolution
Total people management time: 20-25 hours/week

Strategic Work Required:

Architecture decisions
Technology roadmap planning
Investor and board updates
External partnerships
Innovation and R&D
Total strategic time needed: 20-25 hours/week

The Math Doesn't Work: 20-25 hours (people) + 20-25 hours (strategy) = 40-50 hours minimum

But add in:

Meetings with product, sales, marketing
Company all-hands and planning
Urgent issues and firefighting
Email and Slack

Real requirement: 60-70 hours/week

This is not sustainable and something suffers (usually either team development or strategic thinking).

The Hybrid Approach: Fractional CTO + Strong Lead

Structure:

CEO
├── VP Engineering (full-time)
│   └── Engineering Managers
└── Fractional CTO (1-2 days/week)

How It Works:

VP Engineering: 40 hours/week on execution and team
Fractional CTO: 8-16 hours/week on strategy
Weekly alignment meeting between them
Cost: 30-40% less than two full-time executives

When This Works:

15-35 engineers
Technology strategy is important but not 5-days/week critical
Strong VP Engineering who can handle most technical decisions
Budget constraints (pre-Series B)

See how fractional CTO + VP Engineering collaboration works

Salary Comparison by Market (2025 Data)

Here's what these roles actually cost in different markets.

CTO Compensation

Market	Base Salary	Total Comp (with equity)	Equity %
San Francisco / Palo Alto	$280K - $450K	$350K - $600K+	0.5% - 2.5%
New York City	$260K - $420K	$320K - $550K	0.5% - 2.5%
Seattle / Austin	$240K - $380K	$300K - $480K	0.75% - 2.5%
Remote (US)	$220K - $350K	$280K - $450K	1% - 3%
Other Tech Hubs	$200K - $320K	$250K - $400K	1% - 3%

Experience Bands:

First-time CTO (5-8 years experience): Lower end of range
Experienced CTO (8-15 years): Middle of range
Executive CTO (15+ years, previous exits): Upper end of range +20-40%

VP Engineering Compensation

Market	Base Salary	Total Comp (with equity)	Equity %
San Francisco / Palo Alto	$240K - $380K	$300K - $480K	0.3% - 2%
New York City	$220K - $350K	$280K - $440K	0.3% - 2%
Seattle / Austin	$200K - $320K	$250K - $400K	0.5% - 2%
Remote (US)	$180K - $300K	$230K - $380K	0.75% - 2.5%
Other Tech Hubs	$170K - $280K	$220K - $350K	0.75% - 2.5%

Company Stage Impact:

Seed/Series A: Lower salary, higher equity (top of equity range)
Series B/C: Middle of range for both
Series D+/Pre-IPO: Higher salary, lower equity (bottom of equity range)
Public Company: Highest salary, RSUs instead of options

Fractional CTO Pricing (Alternative)

Engagement Level	Hours/Month	Monthly Cost	Annual Cost	vs Full-Time Savings
Strategic Advisory	20-30 hours	$8K - $12K	$96K - $144K	$150K - $250K/year
Active Engagement	40-60 hours	$12K - $18K	$144K - $216K	$100K - $200K/year
Heavy Engagement	60-80 hours	$18K - $25K	$216K - $300K	$50K - $150K/year

Break-Even Analysis:

If you need strategic CTO work but not 40 hours/week, fractional makes financial sense:

Example: Series A Startup (15 engineers)

Full-time CTO cost: $280K salary + $40K benefits + 1.5% equity = ~$320K+
Fractional CTO cost: $15K/month × 12 = $180K
Savings: $140K+ in year one
Plus: Fractional CTO brings more experience (typically 15+ years vs. 8-10 for affordable full-time)

Decision Framework: 6 Key Questions

Use this framework to decide what you need:

Question 1: What's Your Biggest Pain Point?

If "We can't ship fast enough / Missed deadlines / Quality issues" → You need VP Engineering first

If "We don't know what to build / Tech stack decisions / Architecture unclear" → You need CTO first (consider fractional)

If Both: → Fractional CTO + VP Engineering

Question 2: How Many Engineers Do You Have?

0-5 engineers → Neither yet. Make your best engineer "Head of Engineering"

6-15 engineers → VP Engineering (full-time) + Fractional CTO (optional, for strategy)

15-30 engineers → VP Engineering (full-time) + Fractional or Full-Time CTO

30+ engineers → Both roles, full-time

Question 3: Are You Technical or Non-Technical?

Technical Founder (can code, understand architecture) → VP Engineering first - You can handle strategy initially

Non-Technical Founder → CTO first (fractional is fine) - You need technical expertise

Question 4: What's Your Budget?

Under $250K/year for both roles → VP Engineering ($180K-$220K) + Fractional CTO ($12K-$15K/month)

$250K-$350K/year → Full-time VP Engineering, add Fractional CTO if strategic needs

$350K-$500K/year → Consider full-time CTO if strategic work justifies it, or VP Eng + experienced Fractional CTO

$500K+/year → Both roles, full-time

Question 5: How Technical Is Your Product?

Deep Tech / Infrastructure / Developer Tools → CTO is critical - Technology IS the product

SaaS / B2B Software → Both are important - Start with fractional CTO + VP Eng

Consumer / E-commerce → VP Engineering often more critical - Execution and scale matter most

Question 6: What's Your Fundraising Stage?

Pre-Seed / Seed → Fractional CTO for investor credibility + technical guidance

Series A → VP Engineering + Fractional CTO (optimal cost/value)

Series B → Both roles - Consider full-time CTO if not already hired

Series C+ → Both roles, full-time - Need both for scale

Common Mistakes to Avoid

Here are the five most expensive mistakes companies make:

Mistake 1: Hiring CTO Too Early

What It Looks Like: Seed-stage company with 3 engineers hires a "CTO" at $280K+ salary who spends 80% of time coding.

Why It's Wrong: You're paying executive salary for an individual contributor. That $280K could hire two strong senior engineers.

Better Approach:

Hire "Head of Engineering" or "Lead Engineer" at $150K-$200K
Bring in fractional CTO for 1 day/month for strategic guidance ($3K-$5K/month)
Save: $100K+/year

Mistake 2: Not Hiring VP Engineering When Needed

What It Looks Like: 20 engineers, CTO trying to do both strategy and management, 1-on-1s getting skipped, team complaining about lack of direction.

Why It's Wrong: Your CTO burns out, or strategy suffers, or both. Engineers leave due to poor management.

Warning Signs:

CTO working 70+ hours/week
Engineering managers have no clear manager
Process problems persist for months
High engineer turnover

Better Approach: Hire VP Engineering when you hit 12-15 engineers, before problems get severe.

Mistake 3: Unclear Roles and Responsibilities

What It Looks Like: Both CTO and VP Engineering hired, but no one knows who decides what. Conflicts over technology choices, hiring, budget.

Why It's Wrong: Decision paralysis, political infighting, duplicated work, engineer confusion.

Better Approach: Create explicit RACI matrix:

CTO Responsible For: Strategy, architecture, external tech relationships
VP Engineering Responsible For: Execution, team management, delivery
Both Accountable For: Engineering quality and business outcomes
CEO Consulted On: Major technology investments, organizational changes
Board Informed Of: Technology risks, major initiatives

Mistake 4: Wrong Reporting Structure

What It Looks Like: VP Engineering reports to CTO, but CTO has no people management experience and doesn't want to manage.

Why It's Wrong: VP Engineering gets no support or direction. Team suffers.

Better Approach: Match reporting structure to CTO's strengths:

CTO good at people management? → VP Eng reports to CTO
CTO is visionary/external focused? → Both report to CEO (peer model)

Mistake 5: Hiring for Title Not Capability

What It Looks Like: Hiring someone who was "VP Engineering" at a 200-person company to manage your 8-person team.

Why It's Wrong:

They're used to managing managers, not individual contributors
They build heavy process for a small team
They're bored and leave within a year
You overpay for unnecessary experience

Better Approach: Hire for your current stage + 12 months growth:

8-15 engineers: Hire experienced Engineering Manager who wants to grow into VP
15-30 engineers: Hire VP who has scaled teams from 15→50
30+ engineers: Hire VP who has managed at 50+ scale

Avoid these mistakes: Work with experienced fractional CTO who has seen it all

Frequently Asked Questions

1. Can a VP Engineering become CTO?

Yes, it's common, but requires expanding skill set. VP Engineering excels at execution and management. To become CTO, they need to develop:

Strategic thinking and long-term vision
External relationship building (investors, partners, media)
Business acumen and commercial awareness
Architecture and system design depth

Best path: VP Engineering role at 15-30 person company → CTO role at earlier-stage company (8-15 engineers) → CTO at larger company.

2. Can a CTO do VP Engineering's job?

Sometimes, but it's not common. CTOs typically come from architecture/technical leadership backgrounds, not people management. Key gaps:

1-on-1s and performance management
Process implementation and optimization
Day-to-day team operations
Hiring operations and recruiting

Some CTOs develop these skills, but many prefer to hire a strong VP Engineering to handle execution.

3. What if I can only afford one role?

Hire based on your biggest pain:

Execution problems (missed deadlines, quality issues) → VP Engineering
Strategic problems (architecture decisions, tech stack) → Fractional CTO (much cheaper than full-time)
Both problems → VP Engineering + Fractional CTO costs less than one full-time CTO

Many Series A companies run VP Engineering ($220K) + Fractional CTO ($12K-15K/month) = $360K total, vs. $450K+ for senior full-time CTO.

4. How do I know when to split the role?

Watch for these signals:

Engineering team hits 12-15 people
CTO working 60+ hours/week consistently
Either strategy OR execution is suffering
Engineers complaining about lack of direction or support
CTO missing 1-on-1s or strategic initiatives getting delayed

Rule of thumb: If one person is doing both jobs adequately, you're probably only 3-6 months from needing to split it.

5. Should VP Engineering write code?

At 6-15 engineers: Maybe 10-20% time (mostly code reviews, architecture guidance)

At 15-30 engineers: Maybe 5-10% time (code reviews, critical features)

At 30+ engineers: Rarely (0-5% time, emergency only)

VP Engineering coding regularly signals:

Team is understaffed, OR
VP isn't delegating effectively, OR
VP is avoiding management work (red flag)

6. Should CTO write code?

Highly variable by company and CTO preference:

Deep tech/infrastructure companies: 20-40% time coding is common

SaaS companies: 5-20% time on architecture and critical features

Enterprise companies: 0-10% time, mostly code reviews

The CTO's coding should be:

High-leverage (architecture, frameworks, critical paths)
NOT feature delivery (that's what the team is for)

If CTO is writing features regularly, either you're understaffed or CTO is avoiding strategic work.

7. What's the career path to CTO vs VP Engineering?

Path to CTO:

Senior Engineer (5-8 years)
Staff/Principal Engineer or Architect (2-4 years)
Director of Engineering/Architecture (2-3 years)
CTO at smaller company (2-4 years)
CTO at larger company

Alternative: Founding/early engineer → Head of Engineering → CTO

Path to VP Engineering:

Senior Engineer (5-8 years)
Engineering Manager (2-3 years)
Senior Engineering Manager or Director (2-4 years)
VP Engineering

Key Difference: CTO path emphasizes technical depth and architecture; VP path emphasizes people management and delivery.

8. Do both roles need to be technical?

CTO: Absolutely yes. Must have deep technical expertise, typically 10+ years software engineering experience. Cannot be effective without ability to evaluate technology, understand architecture, and command respect of engineers.

VP Engineering: Mostly yes, but people management skills matter more than technical depth. Must understand technology enough to:

Evaluate engineer performance
Participate in architecture discussions
Understand technical tradeoffs

A VP Engineering with 60% management skills + 40% technical skills often outperforms one with 40% management + 60% technical.

9. How do CTO and VP Engineering split budget responsibility?

Typical Split:

CTO Owns:

Total technology budget
Infrastructure and hosting costs
Major vendor contracts ($50K+)
R&D and innovation budget
Strategic technology investments

VP Engineering Owns:

Engineering team payroll
Recruiting and hiring costs
Developer tools and productivity software
Training and development budget
Team activities and culture budget

Joint Ownership:

Annual engineering headcount plan
Major hiring initiatives
Capital expenditures (new tools, infrastructure)

10. Can one person report to both CTO and VP Engineering?

Generally not recommended (matrix reporting rarely works well), but there are exceptions:

When It Works:

Infrastructure/DevOps team (reports to CTO for strategy, VP Eng for execution)
Architecture team (reports to CTO for direction, VP Eng for process)
Security team (reports to CTO for standards, VP Eng for implementation)

Keys to Success:

Clear definition of which manager handles what (strategy vs. execution)
CTO and VP Eng highly aligned
Regular three-way check-ins
Clear priority-setting process

When It Doesn't Work: Product engineering teams should report clearly to VP Engineering. Matrix reporting creates confusion about priorities and performance expectations.

11. What happens to CTO when VP Engineering joins?

This transition can be tricky. Here's what usually happens:

Best Case:

CTO relieved to hand off execution and people management
Focuses on strategy, external relationships, innovation
Works closely with VP Eng on alignment
Both roles thrive

Common Challenges:

CTO feels loss of control or authority
VP Engineering feels like "CTO's minion"
Engineers confused about who's really in charge

Success Factors:

Clear role definition BEFORE hiring VP Eng
CTO actively supports VP Eng with team
CEO reinforces VP Eng's authority on execution
Weekly CTO-VP Eng alignment meetings

12. Should I hire CTO or VP Engineering for a remote team?

Remote-first companies should prioritize:

VP Engineering for:

Distributed team culture building
Asynchronous communication processes
Remote hiring and onboarding
Distributed team productivity
Time zone management

CTO for:

Technical architecture (location independent)
Strategic direction (location independent)
External relationships (often easier remote with video tools)

Recommendation: Hire VP Engineering first for remote teams. Managing distributed teams requires more active management, processes, and communication - all VP Engineering strengths.

Fractional CTO works especially well for remote teams (already working asynchronously, comfortable with part-time executives).

13. How long does it take to hire CTO vs VP Engineering?

Average Time-to-Hire (2025):

VP Engineering:

Time to hire: 3-5 months
Why: Need deep people management skills (harder to assess), culture fit critical, multiple interviews with team
Candidate pool: Medium size

CTO:

Time to hire: 4-6 months
Why: Smaller candidate pool, higher bar, often passive candidates, need board/investor approval
Candidate pool: Small

Fractional CTO:

Time to engage: 2-4 weeks
Why: Firms have pre-vetted CTOs, faster vetting process, lower commitment makes decision easier
Candidate pool: Smaller but pre-vetted

Tip: Start CTO search before you desperately need one. Many companies use fractional CTO while searching for full-time.

14. What if CTO and VP Engineering disagree?

Disagreements are healthy, but need resolution process:

Technical Disagreements:

Both present cases with data
If no consensus, CTO decides (technical strategy is their domain)
VP Eng implements decision fully (no passive resistance)

Execution Disagreements:

Both present cases with data
If no consensus, VP Engineering decides (execution is their domain)
CTO supports decision fully

When Both Impact Strategy AND Execution:

Escalate to CEO
CEO makes final call
Both execute with full support

Red Flag: If CTO and VP Eng disagree constantly (weekly), something's wrong:

Wrong reporting structure
Personality conflict
Unclear role boundaries
One person wrong for the role

15. Can I hire fractional for both roles?

Yes, but carefully:

Fractional CTO + Fractional VP Engineering:

Cost: $12K-15K (CTO) + $10K-12K (VP Eng) = $22K-27K/month
vs Full-Time: Saves $300K-400K/year
Works When: Team under 15 engineers, budget constrained, stable execution

Risks:

Neither role fully committed
Gaps in coverage (both part-time)
Coordination overhead
Engineers want full-time leadership

Better Approach:

Full-time VP Engineering + Fractional CTO (most common)
Engineers have full-time manager for support
Strategic guidance from experienced CTO part-time
40-50% cost savings vs. two full-time execs

Next Steps: Making the Right Hire for Your Company

You now understand the key differences between CTO and VP Engineering, when to hire each role, and how they work together effectively.

Here's your action plan:

If you have 0-8 engineers:

Don't hire either title yet
Promote your strongest engineer to "Head of Engineering"
Consider fractional CTO for strategic guidance (1-2 days/month)

If you have 8-15 engineers:

Hire VP Engineering to manage team and execution
Add fractional CTO if you have strategic technology questions
Budget: $180K-$250K (VP Eng) + $8K-12K/month (fractional CTO optional)

If you have 15-30 engineers:

Hire VP Engineering if you don't have one
Add fractional or full-time CTO for strategy
Budget: $200K-$300K (VP Eng) + $12K-20K/month (fractional) or $250K-$350K (full-time CTO)

If you have 30+ engineers:

You need both roles, full-time
Budget: $500K-$700K+ total compensation

Not sure what you need? Let's talk.

We've helped dozens of startups navigate this exact decision. Our fractional CTOs can provide strategic guidance while you build your engineering leadership team - or work alongside your VP Engineering to provide the perfect balance of strategy and execution.

Schedule a free consultation to discuss your specific needs

See our fractional CTO pricing and packages

Learn more about how fractional CTO + VP Engineering collaboration works

About the Author: This guide was created by Fractional CTO Experts, a team of experienced technology executives who have served as CTOs and VPs of Engineering at companies from seed stage through IPO. We've made these hiring decisions ourselves and helped hundreds of startups build their engineering leadership teams.