Many software engineers and tech managers dream of one day stepping into the role of Vice President of Engineering or Chief Technology Officer. These positions represent the pinnacle of a technology leadership career, offering the chance to guide an entire engineering organization and drive a company’s technical vision. Achieving a VP of Engineering or CTO title isn’t easy; it requires not only years of experience but also a broad skill set and strategic career moves.
What does it take to reach these top roles? Below, we break down what a VP of Engineering or CTO actually does, the key skills you’ll need, how the job market looks for these positions, what kind of salary you can expect, and some proven ways to work toward becoming a VP of Engineering or CTO.
What is a VP of Engineering or CTO?
A Vice President of Engineering and a Chief Technology Officer are both top-level technology executives, but their focus and responsibilities differ slightly. In general, both roles involve leading the technical direction of a company and ensuring that the engineering teams deliver quality results aligned with business goals. They are accountable for the success of the organization’s technology strategy and often form part of the senior leadership team.
VP of Engineering: The VP of Engineering (sometimes just called “Head of Engineering“) is typically in charge of the engineering department’s day-to-day operations. This means managing teams of engineers and engineering managers, overseeing project execution, and making sure that products are built on time and meet requirements. A VP of Engineering establishes processes for software development, hires and mentors engineers, manages budgets and resources for the engineering org, and often reports directly to the CEO (or sometimes to a CTO, if one exists). In essence, the VP of Engineering is responsible for turning the technical vision into reality through effective team management and engineering execution.
CTO: The Chief Technology Officer is a C-suite executive focused on high-level technical strategy and innovation. The CTO defines the company’s technological vision: for example, which platforms or architectures to adopt, what new technical capabilities need to be developed, and how technology can provide a competitive advantage. CTOs often evaluate emerging technologies, guide long-term research and development, and ensure the company’s tech strategy aligns with its business objectives. Depending on the company, a CTO might be more outward-facing (e.g. speaking at conferences, meeting with key clients or investors about technology) while the VP of Engineering handles internal team leadership. In organizations without a VP of Engineering, the CTO may also directly manage engineering teams, but in companies that have both roles, the CTO is the visionary and the VP of Engineering is the executor.
Role overlap and differences: Both the CTO and VP of Engineering work closely together when both exist. A simple way to distinguish them is: the CTO figures out “what” technology needs to do for the business, and the VP of Engineering figures out “how” to get it done through the team. The CTO focuses on strategy, while the VP of Engineering focuses on operations. However, these lines can blur. In smaller startups, one person might fill both roles, or the titles might be used interchangeably. In larger companies, they are distinct: for example, the CTO might set the technical roadmap (the destination) and the VP of Engineering will ensure the engineering organization can execute that roadmap effectively (charting the route and keeping the train on the tracks). Ultimately, both are leadership positions requiring a mix of technical knowledge and managerial expertise, aimed at leveraging technology to drive business success.
VP of Engineering or CTO Skills
Moving into an executive engineering role requires more than just being a great developer. You’ll need to develop a blend of technical, managerial, and strategic skills. Some of the key skills and qualities for a VP of Engineering or CTO include:
- Technical expertise: A strong foundation in software engineering and architecture is essential. As a tech leader, you should understand the technologies your teams are using (and new ones on the horizon). You don’t need to code every day, but you must be able to review architectural decisions, evaluate technical trade-offs, and guide the team on best practices. Broad knowledge of different programming languages, frameworks, cloud platforms, and development methodologies is valuable, as it lets you make informed high-level decisions.
- Leadership and team management: These roles are primarily leadership positions. That means being able to inspire and manage engineering teams effectively. Great VPs and CTOs know how to hire the right talent, organize teams, delegate tasks, and build a healthy engineering culture. You’ll need experience in people management (ranging from mentoring individual engineers to managing managers) and the ability to scale processes as the team grows. Leadership also involves making tough calls, resolving conflicts, and keeping the team focused on goals.
- Communication skills: Communication is a critical skill for any executive. As a VP of Engineering or CTO, you act as a bridge between the engineering teams and other parts of the business. You’ll be explaining complex technical topics to non-technical stakeholders (like the CEO, board members, or other department heads) in clear terms. You also need to communicate the business vision back to your engineers so they understand the “why” behind their work. Being able to listen, negotiate, and clearly articulate ideas (in writing and speaking) is key to success in these roles.
- Strategic thinking: Executives must see the big picture. For a CTO especially, it’s important to be forward-looking – spotting technology trends, anticipating challenges or opportunities, and crafting a long-term technology roadmap. Strategic thinking also applies to VPs of Engineering as they decide how to structure teams, what processes or tools to introduce, and how to align engineering priorities with the company’s strategic objectives. Essentially, you have to make decisions that not only solve immediate problems but also set the company up for future success.
- Business acumen: Successful CTOs and VPs of Engineering understand the business side of things, not just the tech. This means grasping the company’s market, product strategy, revenue model, and customer needs. When you know how the business operates, you can ensure the technology strategy supports those business goals. For example, in a Software-as-a-Service (SaaS) company, the VP or CTO should understand customer acquisition costs, subscription revenue models, and service-level expectations so they can make technology choices that make business sense. Having some knowledge of finance, marketing, and operations helps you collaborate effectively with other executives and contribute to high-level company decisions.
VP of Engineering or CTO Employer Demand
The good news for aspiring VPs of Engineering and CTOs is that the demand for experienced tech leaders is strong. Companies across industries are realizing that to stay competitive in a digital world, they need solid technical leadership. In the United States, for example, the Bureau of Labor Statistics projects steady growth in executive-level positions: employment of top executives (which includes roles like VP of Engineering and CTO) is expected to grow about 6% over the next decade. Every year, new startups are founded and established companies undertake new technology initiatives – all of which require seasoned professionals to lead their engineering efforts.
In the tech sector itself (especially at software companies and SaaS providers), skilled engineering leaders are often in short supply relative to demand. Nearly every high-growth startup eventually looks to hire a VP of Engineering once their engineering team expands beyond a small handful of developers. Likewise, larger tech firms and enterprises are always on the lookout for capable CTOs to drive innovation. This means that if you develop the right skills and experience, there can be multiple opportunities out there for you. At any given moment, job boards feature numerous openings for VP of Engineering and CTO positions. Using specialized job platforms can help you zero in on the right opportunities; for instance, The SaaS Jobs is a job board specifically tailored to SaaS and technology roles, where VP of Engineering and CTO jobs are often posted. Companies often enlist executive recruiters to find talent for these roles as well, so building a strong professional network and making your aspirations known can put you on recruiters’ radars. Overall, employer demand is high, but keep in mind these are competitive roles – companies seek candidates who not only have stellar technical credentials but also proven leadership capabilities.
VP of Engineering or CTO Salary
Because VP of Engineering and CTO are executive-level roles, they come with high salaries to match the level of responsibility. Of course, pay varies widely depending on factors like geography, the size and success of the company, and your own experience. A VP of Engineering at a small startup might make much less than a CTO at a large multinational firm. Many tech companies also include bonuses, stock options, and other incentives as part of the compensation package for these roles. Still, it’s useful to look at general salary ranges to get an idea of what to expect. Below are approximate average annual salary ranges for VP of Engineering/CTO positions in a few major countries:
| Location | Average Salary Range |
|---|---|
| United States (USD) | $150,000 – $270,000 per year |
| United Kingdom (GBP) | £100,000 – £170,000 per year |
| Canada (CAD) | C$140,000 – C$250,000 per year |
| Australia (AUD) | A$180,000 – A$300,000 per year |
These figures represent average ranges for experienced professionals in those roles. At the lower end would be someone working at a smaller company or in an area with lower cost of living, while the higher end reflects salaries at big tech companies or in expensive tech hubs. Note that total compensation can go beyond these ranges when you factor in bonuses and equity (stock grants or options), which are commonly offered to VP and C-level executives. In short, VP of Engineering and CTO are among the best-paying jobs in tech, which makes sense given their importance and impact on the business.
Ways to Become a VP of Engineering or CTO
Climbing the ladder to a VP of Engineering or CTO position typically takes time, strategic planning, and consistent career development. Here are some steps and strategies that can help you work toward these executive roles:
1. Build a Strong Technical Foundation
Almost all VPs of Engineering and CTOs start out as engineers. A solid educational background in a relevant field sets the stage. In fact, most people in these roles have at least a bachelor’s degree in computer science, software engineering, or a related discipline. Formal education isn’t strictly mandatory (there are CTOs without a college degree), but a degree can provide fundamental knowledge and credibility. More importantly, focus on honing your technical skills early in your career. Take on challenging programming projects, understand system architecture, and become proficient in software design and problem-solving. The goal is to establish yourself as a capable engineer who thoroughly understands how to build software products. This technical credibility will be crucial as you move up the ranks.
2. Gain Broad Engineering Experience
To lead engineers, you should have been in their shoes across various scenarios. Seek out diverse experiences in your engineering career. This could mean working on different types of projects (front-end, back-end, infrastructure, QA, etc.), or even in different industries and team environments. It helps to have a mix of startup and larger company experience if possible – startups teach you agility and how to wear multiple hats, while big companies teach structure and how to scale systems and teams. Over time, aim to progress from junior roles to senior engineer and tech lead positions. Demonstrating that you can deliver results as an individual contributor and as a project leader will set the foundation for taking on managerial duties. Employers looking for a VP or CTO will favor candidates who have a track record of successfully building and launching products or systems.
3. Develop Leadership Skills
One of the biggest leaps is moving from being a senior engineer to a true leader of people. Start by taking on small leadership opportunities: perhaps you can mentor new hires, lead a project team, or volunteer to improve a development process. As you prove yourself, you may be promoted to roles like Engineering Manager or Team Lead. In these roles, focus on learning how to bring out the best in others. You’ll need to master skills like project planning, recruiting and interviewing engineers, giving constructive feedback, and coordinating with other departments. It’s also important to learn to delegate (you can’t do everything yourself) and to trust your team. Over time, seek out higher leadership roles – for example, becoming a Director of Engineering overseeing multiple teams. Each step up the management ladder prepares you for the broader responsibilities of a VP of Engineering or CTO. Remember that effective leadership in engineering is a blend of technical insight and empathy for your team.
4. Understand the Business and Industry
As you rise in rank, the decisions you make will increasingly impact business outcomes, not just technical outcomes. A great CTO or VP of Engineering is as comfortable discussing product strategy and business models as they are discussing algorithms. Take opportunities to learn about the business side: work closely with product managers, attend strategy meetings if you can, and pay attention to how your company makes money. You may consider pursuing an MBA or taking business-related courses, though this isn’t a requirement – many tech leaders pick up business knowledge on the job. The key is to develop a mindset beyond the engineering silo. Ask questions like, “How will this technical decision affect our users or our revenue?” or “What are our competitors doing technologically?” Industry knowledge is also vital; stay up-to-date with trends in your sector, whether it’s fintech, healthcare, SaaS, or another domain. The more you understand the context in which your company operates, the better you can make strategic tech decisions that drive the company forward.
5. Find Mentors and Network Strategically
Nobody reaches the executive level alone. Mentors can play a big role in your career growth. If possible, find one or two seasoned technology leaders whom you respect – this could be a CTO at your company, a former boss, or an industry veteran you meet at a conference. Their guidance can be invaluable for navigating career moves and developing leadership savvy. They might provide feedback on your skills, advice on what roles to pursue next, or even endorsements when you’re being considered for a position. In addition to mentorship, invest time in networking. Building relationships in the tech community can open doors to opportunities you might not hear about otherwise. Attend industry meetups, join online forums or LinkedIn groups for engineering leaders, and consider speaking at events or contributing to open-source projects to get your name out there. A strong professional network can lead to hearing, “Hey, our company is looking for a VP of Engineering – you’d be great for it,” which is a fantastic way to discover or secure that next big role.
6. Consider the Startup Path
Not everyone becomes a VP of Engineering or CTO via internal promotions at big companies. Another route is the entrepreneurial or startup path. If you’re inclined, joining a very early-stage startup (or founding one yourself) can effectively make you the de facto engineering leader from day one. In a small startup, titles might be fluid – you might be “CTO” simply because you’re the most senior technical person in a five-person company. This path can accelerate your exposure to what the top job entails: you’ll likely handle everything from coding to setting technical direction to maybe even pitching in front of investors. It’s a crash course in leadership. However, keep in mind that having the title doesn’t automatically make you seasoned; you’ll still need to grow into the role, and as the startup scales, you must scale your skills with it. Many successful CTOs of startups have had to learn rapidly on the job or bring in advisors to help. The startup route is high-risk, high-reward: it can fast-track you to an executive title, but it also demands that you adapt very quickly. If the startup succeeds, you’ll have proven yourself in the CTO capacity; even if it doesn’t, the experience (and the title on your resume) can be a springboard to future leadership roles.
7. Step into the Role
Ultimately, to become a VP of Engineering or CTO, you have to take the leap. This might happen by being promoted within your organization or by pursuing an external opportunity. Many people find that changing companies is necessary to make that final step – for instance, you might go from Engineering Director at a large company to VP of Engineering at a smaller company that values the experience you bring. Be prepared to articulate your vision and leadership philosophy during interviews for these roles. Companies will be looking for evidence that you can think strategically, lead large teams, and deliver results. Leverage your network and possibly engage with executive recruiters to find open VP/CTO positions. When an opportunity comes, don’t be discouraged if you don’t land it on the first try; competition can be stiff. Treat the process as a learning experience and refine your approach. Once you do land that coveted role, remember that the journey of growth continues. Your first 90 days as a new VP or CTO will be about learning and adapting to ensure you succeed.
Becoming a VP of Engineering or CTO is a marathon, not a sprint. It often takes a decade or more of progressive experience and growth. Focus on excelling in each role you hold, actively seek out leadership challenges, and keep learning from those around you. If you stay persistent and strategic, you’ll gradually build the résumé and reputation needed to reach that executive level. And when you do, you’ll have the rewarding responsibility of steering technology strategy and mentoring the next generation of engineers in your organization.
