Chief technology officer facts for kids

A Chief Technology Officer (CTO) is a top-level leader in a company. This person focuses on all the scientific and technology-related things happening within the organization. They are sometimes called a Chief Technical Officer or Chief Technologist.

A CTO is quite similar to a chief information officer (CIO). CTOs make big decisions about the company's overall technology. These decisions help the company reach its main goals. CIOs, on the other hand, work with the company's information technology (IT) team. They handle the daily tech operations. A CTO needs to know about new and old technologies. This helps them guide the company's future plans. The exact jobs of a CTO can change from one company to another. It mostly depends on how the company is set up.

In the United States, a CTO usually earns between $130,000 and $195,000 each year. This amount can change based on the type of company. For example, in 2018, CTOs in finance earned about $200,000. Those in online shopping (e-commerce) earned around $76,000.

How the CTO Role Started

After World War II, big companies started their own research labs. These labs were often far from the main offices. The goal was to hire smart scientists. They gave them places to do research for the company. This way, scientists could focus on new ideas. They didn't have to worry about daily office tasks. This is where the idea of a CTO began. A CTO would focus on the big picture of technology.

Back then, the person in charge of a lab was a company vice president. But they didn't join in the main company decisions. Instead, the technical director was the one who found new scientists. They also helped them do research and create new products.

In the 1980s, these research director jobs changed a lot. Technology became super important for almost all products and services. Companies needed a leader who understood the technical side of products. This person could give advice on how to make things better and create new ones.

This led to the creation of the Chief Technology Officer job. Big companies started these roles in the late 1980s. This happened as the information technology industry grew. Computer and internet companies especially helped this role become important.

What a CTO Does

A CTO looks at what a company needs now and in the future. They use money to make smart investments. These investments help the company reach its goals. The CTO is the highest technology leader in a company. They lead the technology or engineering department. This job became very important as the IT industry grew. Now, it's common in all kinds of tech-based companies. This includes computer tech like game makers, e-commerce (online shopping), and social media. It also includes other tech fields like biotech, medicine, defense, and cars.

In companies that are not mainly about technology, a CTO usually reports to the chief information officer (CIO). The CTO focuses on long-term plans and big ideas. But they still need deep technical knowledge. In companies that are all about technology, the CIO and CTO might be at the same level. The CIO focuses on information technology. The CTO focuses on the company's main products and other supporting technologies.

A CTO might also work with or manage other roles. These can include R&D managers or vice presidents of engineering. The CTO also needs to know about rules and laws. This includes things like patents and trade secrets. They work with lawyers to make sure the company follows all rules. This helps with planning and deals with other companies.

In older industries like manufacturing or banking, a CTO-like role might appear. This happens when they start using new technologies. They might develop new tech to help their own work. Or they might create new products or services.

To become a CTO, a person needs many skills. They usually need a bachelor's degree or a master's degree. They also need special certifications. Many years of experience in their field are important. Plus, they need good management skills related to technology.

As technology becomes more vital in business, new jobs keep appearing. A CTO might also work with a Chief Security Officer (CSO). This person is often called a Chief Information Security Officer. A CSO's job is to protect the company's computer network. This prevents problems like privacy issues or legal troubles. All top tech leaders in a company must work together. This helps create the best working system. They all report to the CEO, who is the top boss.

Famous CTOs

Here are some well-known CTOs:

• John Carmack
• Mike Krieger
• David Heinemeier Hansson
• Werner Vogels
• Elon Musk

See also

In Spanish: Director de tecnología para niños