I have always wondered what the different tech positions are at companies, sometimes it's hard to define what their role is and who is responsible for what. To an outsider - 2 of the most often confused tech roles are the VP of Engineering and CTO, so I decided to do a deep dive to find out more.

The following article provides some insight and comparison of the two roles and how they can be different.

What Do the Terms CTO and VP of Engineering Mean?

The title of these roles can vary from company to company, but they generally refer to the same job. The main difference between a VP Engineer and a CTO is their scope of responsibility. A VP Eng's focus will be on Engineering, while a CTO's focus is more on Technology in general with no specific department restriction.

When a firm does not have a CTO, the responsibilities of the CTO will roll into that of the VP Eng or Director Eng. In some instances, both titles may be used interchangeably for this purpose. Also, when a company is small, the VP Eng may be responsible for non-engineering tasks such as personnel management. 

“In many good startups, the two are the same person. Only once the company has shipped its first product or gets quite large is there much room for daylight between the two functions.” -  John Giannandrea, CTO @Tellme Networks 

What Do CTOs and VPs Eng Typically Do?

The responsibilities of a CTO can vary from industry to industry, but usually, it includes some or all of the following activities:  strategic planning, leading initiatives on technology and technological change, managing technologists (e.g., data scientists), and setting their development priorities, defining R&D strategies and new product classes (or categories), and oversight of innovation.

As outlined in an article on Betterteam, the roles and responsibilities of a VP Eng focus on the day-to-day operation and management of an engineering department while maintaining an overall focus on developing new technologies. Critical responsibilities for a VP Eng include:

• Leading the team through management and mentorship.
• Contributing to recruitment activities.

It is also common for VP Engs to have a more detailed role with specific engineering functions such as development, research, or design.

In some cases, the CTO is also expected to manage and set the direction for Engineering in addition to all of his/her other duties. A quote from the CTO of a large company on this subject is "As CTO, I wear a lot of hats - from working with the board on our technology strategy and roadmap to developing individual features and products to ensuring our engineering team is effective and productive."

In other words, the VP Eng manages the day-to-day operation of an engineering department while working closely with a CTO who provides additional guidance and strategic input about technology and technological change.

Many companies do not separate these roles out but may instead use them interchangeably depending on different circumstances. It is important to note that a CTO may be asked by upper management to assume the leadership responsibilities for an engineering department if required.

What is the Difference Between a CTO and VP Eng?

1. Overall Focus

CTO: The CTO is responsible for the overall technology strategy of the company and, ensures that all tech initiatives are aligned with the company’s goals. They work closely with the CEO to make sure that the company is using technology in the most effective way possible.

VP Engineer: The VP Eng is responsible for developing and leading the engineering team, and ensures that all products are delivered on time and meet the company’s standards. They work closely with the CEO to make sure that the products the company produces are of the highest quality.

2. Degree of Control

CTO: The CTO has a lot of control over the technology decisions that are made and the direction that the company’s tech initiatives take.

VP Eng: The VP Eng does not have as much control over the engineering team or the products that are delivered. They must work closely with the CEO to get their ideas across and make sure that their team is productive.

It is important to note that the CTO of a company reports to the CEO, while the VP Eng of a company does not report to another person in the company.

3. Employees Who Work Under Them

CTO: Usually large companies will have more than one CTO and these individuals may be assigned responsibility for different technology areas, such as cloud computing or mobile technologies, etc. There will also likely be more than one VP Eng who reports to each CTO (or SVP/D). In many cases, there is also a Director Engineer (DE) reporting to each VP Eng (and CTO).

In very small organizations sometimes all engineering work is done by a single person in an arrangement where they are responsible for all major engineering functions in addition to their other technical duties—this would include research and development activities.

VP Engineering: As noted above, it is common for VP Engs to directly manage certain engineering teams (or part thereof) while another individual may act as the CTO to make strategic decisions across the organization. There will likely be an engineering manager reporting to each VP Eng who in turn manages a DE and subordinate engineers.

4. Team Structure

CTO: The CTO’s role is to develop the overall technology strategy for the company and to ensure that all tech initiatives are aligned with the company’s goals. They work closely with the CEO to make sure that the company is using technology in the most effective way possible.

VP Eng: The VP Eng is responsible for developing and leading the engineering team, and ensuring that all products are delivered on time and meet the company’s standards. They work closely with the CEO to make sure that the products the company produces are of the highest quality.

VP Engs usually directly manage certain engineering teams while another individual may act as the CTO to make strategic decisions across the organization. There will likely be an engineering manager reporting to each VP Eng who in turn manages a DE and subordinate engineers.

5. What They Get Paid

CTO:  CTOs typically get higher salaries than VP Engs because they have more responsibility for technology strategy in addition to day-to-day engineering activities. As noted above, CTOs are sometimes given responsibility for several different areas of technological focus which can increase their value within an organization or industry.

VP Eng: Again, since the role of VP Engs does not generally carry any specific level of authority over engineering teams, these individuals will be paid generally less than CTOs.

6. Role vs. Title

The role of a CTO is primarily to provide leadership in terms of technology strategy and innovation whereas the title VP Eng implies that this person also manages engineering teams or part thereof.

If you are looking for someone who can do both, then it might be better to look for an individual with the title CTO since it is more likely that they will have direct influence over engineers compared to the VP Eng position which typically only has indirect authority via their ability to "manage up" to SVPs/Dirs (or VPs) who report directly to CEOs or COOs.

Large Company Differences

In large companies, someone can hold a title such as VP Eng without having any direct authority or responsibility for engineering teams.  For example, in a company with many SVPs/Directs who report to the CEO, it is very common for them to use titles such as VP Eng as a way of indicating what technologies they are responsible for and where they fit within the organizational structure. For this reason, those holding such roles should not be expected to have direct authority over engineering departments.

In contrast, CTOs typically have specific responsibilities related to technology direction and innovation. In other words, their primary role involves providing leadership via technological strategy rather than managing engineering teams themselves.

At the same time, you should understand that titles such as CTO and VP Eng carry a great deal of influence over-engineering departments. In large companies, the roles of each position are quite different but they have a lot in common, especially from an organizational perspective. Since both positions can be occupied by individuals with very similar skill sets there is a great deal of overlap between the two roles.

Having multiple VPs of Engineering is common at larger companies because there are often different technology areas that need to be covered (for instance, cloud computing and mobile technologies). Companies may even hire specialized CTOs for specific functions like architecture or research and development. The VP Eng will likely report directly to the CTO, while the individual who holds the CTO role may have reports from other parts of the company.

Even though it is more common to have only one CTO, some companies do have multiple CTOs who report to the CEO. This usually occurs when there are different technology areas that need to be covered and the company wants someone who is specifically responsible for each area.

Similarities Between the Roles

Let's take a look at some of the similarities and differences:

1. Works Co-equally with Other Vice Presidents

The first difference we noted above which will likely be applicable to most organizations who appoint multiple VPs Eng or CTOs was that these individuals will typically work co-equally. In other words, if you were looking for someone to make technology decisions or influence engineering teams, you would not look to one person but several. Another way of looking at this arrangement is by using the term "shared responsibility ". For example, if there are multiple VP Engs/CTOs then it follows that each will have a specific area of expertise within the company leading to shared responsibilities.

2. Some Similar Job Functions

Although you can find many differences between these two positions, there are also similarities that allow for shared job functions. This means that both CTOs and VP Engs have similar tasks so hiring either position can be very productive for your organization. First, their role is to provide technology leadership by focusing on research & development activities or possibilities for new technologies.

Second, they must frame their management approach in terms of technology strategy rather than any specific product or service. This is very important since they are not expected to design products or determine engineering backlogs.

3. Objective is Innovation

Both roles require that individuals focus on innovation and how it can be integrated into the business model of the company. They must manage this process with technological expertise but also show great attention to detail in terms of how these technologies influence overall business activities.

Having direct authority over engineering teams is not necessary for either position so someone who does will have both technical and business responsibilities. Other parts of their job include identifying market opportunities, recognizing customer needs, building collaborative relationships with other departments (e.g., sales/marketing), driving organizational change, etc.

4. Overall Role in Leadership

Although there are differences between these two roles, they have a lot in common. One of the most important factors to consider about both CTOs and VP Engs is that neither position will typically have direct authority over engineering departments or personnel. However, because each position carries a great amount of influence over the technological plans and strategies for their respective company, you can expect them to guide and develop technology direction.

This happens in three main ways: Strategy Development: Both positions must be able to manage organizational strategy through all stages of development. In other words, when defining the direction of technology, your VP Eng/CTO will use existing business models (or create new ones) as a reference to determine how this technology will impact the business.

If they do not have knowledge of how this would work, then you can expect these individuals to take steps toward educating themselves on business operations. Innovation: Knowledge and expertise around technological innovation is a key component for either CTOs or VP Engs.

These professionals must be able to make objective decisions regarding what technologies are worth developing (i.e., where there is money to be made). Although both positions may pursue similar product development opportunities, they will likely focus more attention on upper-level management (however, it ultimately depends on the position's experience).

Final Thoughts on the Difference Between CTO vs VP of Engineering Roles

While the role of both a VP Eng and CTO is essential to help an organization succeed, there are some key differences between them—these include the degree of control over engineering teams, a specific degree of responsibility for technology development, level of authority over other top executives in the company, etc.

If you are looking for someone who can fulfill both these roles then it might be better to look for a candidate with the title or position of CTO rather than VP Eng since they will likely have more control/authority within the context of their organization's structure.