How to Hire a CTO: Scope, Process, Equity and Cost

Most CTO hires fail at the definition stage, not the interview stage. The company wants an architect, an engineering leader and a technologist who can face customers, and no single person is all three. Choose two, decide who covers the third, and the rest of the process gets easier.

Which CTO the company needs

CompanyWhat the seat ownsWho fits
Pre-product or first versionWhat gets built and on whatA technical co-founder or a fractional CTO, almost always
Ten to thirty engineersArchitecture plus the first managersA hands-on CTO who has grown a team once before
Thirty to a hundred engineersThe engineering organisationA CTO who has managed managers, often with a VP of Engineering
Platform or regulatedTechnical direction and riskA CTO with a security and compliance track record

What the fully loaded number is

A UK scale-up CTO at £150,000 base costs about £172,000 a year once employer National Insurance and pension are added, before equity. Equity for the seat is commonly larger than for any other C-suite hire at the same stage.

A retained search adds a fee of around a third of first-year earnings, so the first year all in is roughly £220,000 before the option grant.

How to assess technical judgement without an engineer on the board

  • Bring in an independent assessor: a former CTO or principal engineer from outside the company who meets the final two and reports on judgement, not trivia.
  • Ask the candidate to review something real: the current architecture under NDA, or a decision the team is facing now. Listen for the questions they ask before the answers they give.
  • Have the senior engineers meet the final candidates. They will know within an hour, and they are the people who leave if the hire is wrong.
  • Reference a chief executive the candidate has worked for and an engineer who worked for them. The two accounts should describe the same person.

When a fractional CTO is the better answer

A company with a capable head of engineering that needs architectural judgement a day or two a week does not need a full-time chief technology officer. A fractional CTO makes the platform decisions and leaves the running to the person already doing it.

A fractional CTO covering the seat while a permanent search runs is also the normal way to avoid six months without technical leadership, since UK engineering leaders carry three-month notice periods.

Common questions

How long does it take to hire a CTO?

Ten to fourteen weeks to an accepted offer with a retained search, plus a notice period that for UK engineering leaders is usually three months. Allow five to six months from decision to desk.

How much equity does a CTO get in a UK startup?

It depends on stage and on whether the person is a founder. A hired CTO joining after a seed round commonly receives a larger option grant than the CFO or CMO hired at the same time, and candidates leaving unvested options behind will ask about a make-whole. Agree the pool and the strike before approaching anyone.

Should I hire a CTO or a VP of Engineering first?

If the hard problem is what to build and on what, a CTO. If the hard problem is shipping reliably with a growing team, a VP of Engineering. Many companies need both by sixty engineers, and the first hire should know the second is coming.

More of them, on hiring, contracts and what a fractional engagement costs, on the fractional executive FAQ.

Read next

Browse the benchMore writing