CEO Ekaterina Osadchuk and the INDIGO Tech Recruiters team conducted the second annual review of salaries for C-level in IT. Recently, we published a review of the salaries of C -Level employees .
And now we will go into detail and consider individual positions. We’ve already written about COOs . Now it’s the turn of CTOs.
The job description of a Technical Director position varies from business to business, but there is a common core of the role. It is the technical implementation of business solutions.
The responsibilities of a CTO can be divided into three categories:
- Technologies — selection and audit, technical risk management
- Business — participation in the management of the organization, the technical aspect of implementing business goals, communication with other top managers in the role of a Manager and as an expert
- Team — coordination of work, participation in recruiting, training, evaluation, etc. In order to successfully complete tasks, a CTO needs both experience in technology (most CTOs have grown from PMs, team leaders, and architects), and well developed skills in management, communication, planning, and so on.
What is the salary range for this key position in IT companies in Ukraine?
Below we’ll show the results of the survey of 32 CTOs in Ukraine.
Figure 1. Country of the company’s foundation.
Figure 2. Number of employees in the company.
Figure 3. Percentage of participants from outsourcing, outstaffing, and product companies.
Most CTOs earn $6000. The general salary range is from $3, 605 to $10, 000. There were several CTOs with a salary of $13, 000 — $14, 000, but, according to the rules of statistics, the highest 10% and the lowest 10% of the data were not included in the review.
Fig. 4 Total remuneration range (salary plus bonuses).
The salary level of a CTO depends on a variety of factors.
We would like to draw your attention to the fact that we excluded the items for which we received less than 4 responses since they are not valid enough for making decisions.
For example, if only 4 CTOs answered that their experience as a Top Manager is 3 years or less, we excluded the responses as not being representative and took into consideration only those with 5 or more responses.
In the figures, these data are displayed as a flat line (and not specified in the tables). For example, only 4 respondents have 1 to 2 years’ experience as a Top Manager — this is not enough data for objective conclusions.
Figure 5. Salary range + bonus on the basis of experience in top management
The figures show that there is no direct relation between the experience of the CTO as a top Manager and the level of salary. CTOs with 3 to 4 years’ experience, as well as those with more than 9 years’ of experience, can receive $6000 — $10000.
Figure 6. Relation between a CTO’s salary and job tenure.
The salary range for CTOs who have worked in one company for 6+ years is wider and higher. CTOs who have worked in one company for 7 to 8 years earn from $5500 to $11800, while CTOs with less than one year’s experience in the company earn about $6000.
But, with age, CTOs start earning more. Under 30 years of age, the median salary is $5000; after 31 years, it is $7500.
Figure 7. Relation between CTO’s salary and the age of CTO.
The age of the company also affects the salary. The highest level of salaries for this position is in companies that have been on the market for more than 10 years. It is $8000 at the median and $13200 at the 90th percentile.
Figure 8. Relation between CTO’s salary and company age.
Figure 9. Detailed indicators of remuneration range depending on the age of the company.
The level of salary increases with the number of employees in the company and the number of employees directly subordinated to the CTO.
Figure 10. Relation between remuneration and the number of employees in the company.
Figure 11. Relation between the remuneration and the number of subordinates.
The majority of the survey participants are representatives of product companies. At the median, the payment level differs insignificantly — from $5150 to $6000.
Figure 12. Relation between the CTO’s salary and the type of company.
CTOs in the blockchain field have the highest remuneration — from $8000 to $14000.
Figure 13. Relation between the CTO’S remuneration and the company’s expertise.
The factors of motivation and demotivation
In addition to the level of rewards, we were interested in the factors of motivation, demotivation, and some working conditions.
For employees in this position, salary level and professional development are equally important (68. 75% each), as well as freedom in decision making and implementation (56. 25%).
Figure 14. Motivation factors for CTOs (click on the picture to enlarge).
The most important demotivating factor is insufficient salary level (37. 5%). Other important demotivators are incompetent management and lack of professional development (31. 25% each).
Figure 15. Demotivating factors for CTOs (click on the picture to enlarge).
46. 88% of respondents do not have any performance indicators linked to their bonus. Most KPIs are related to the implementation of Department plans (37. 50%) and the implementation of individual goals (31. 25%).
Figure 17. Types of employment.
75% of respondents have their salaries pegged to the US dollar.
Figure 18. The currency pegging.
We hope you find this information useful for making the right business decisions.