Short answer: Companies set a CTO salary band by defining the role, choosing a peer group of 10 to 25 comparable companies, pulling current pay data, picking a target percentile (usually the 50th or 75th) and anchoring the band midpoint to that market figure. The range around the midpoint is wide for executives, typically 50% to 65% from minimum to maximum. Base salary is only part of the package, so bonus and equity get their own targets.

Key CTO salary band figures for 2026

• $250,000 to $500,000 is the US base salary band for a CTO at a technology company with about $50M in revenue or at Series B and later (Christian & Timbers, 2026).
• $344,000 to $750,000 is the band for CTOs at AI companies, the highest of 8 industries in the same study.
• $140,000 to $200,000 is typical CTO base pay at pre-seed and seed stage, rising to $420,000 to $700,000 at public and late-stage companies.
• 50% to 65% is the typical range spread for executive salary bands, compared with 30% to 40% for most roles (Salary.com).
• 10 to 25 companies is the usual size of an executive peer group (Pave).
• 61% more US public companies named their CTO as a disclosed executive in 2025 than in 2021, which puts more CTO pay data into proxy statements (The Conference Board).

[Table 1]

What is a CTO salary band?

A salary band is the minimum, midpoint and maximum base salary a company is prepared to pay for a role. For a CTO, the band sets the limits for the offer, for raises while in the role and for the next hire. The midpoint reflects the market rate for a fully capable CTO at the company's stage. The minimum fits a first-time CTO still growing into the scope. The maximum is reserved for a proven leader, a larger scope or a market where talent is scarce.

How do companies set a CTO salary band, step by step?

1. Define the role before the number. A CTO who runs a 300-person engineering organization and owns the AI roadmap does a different job from a CTO who still writes code and leads 8 engineers. Write down scope, reporting line and decision rights first. If the role is closer to delivery management, compare it with CTO vs VP of Engineering.
2. Build a peer group. Pick 10 to 25 companies that match on industry, funding stage, revenue, headcount and geography, as recommended in Pave's executive benchmarking guide. Include the companies you compete with for engineering leaders, not only those in your product category.
3. Pull current market data. Combine compensation platform data, published surveys, search firm benchmarks and proxy statements from public peers. Pave notes that survey data can be 6 to 12 months old by the time it is published, so refresh benchmarks at least every 6 months.
4. Choose a target percentile. The 50th percentile pays at the market midpoint. The 75th percentile pays above most peers and suits critical roles or companies that can offer less equity. Decide the percentile before you look at the numbers, so the data does not drive the philosophy.
5. Set the midpoint and the range. Anchor the midpoint to the market figure at your chosen percentile, then spread the range around it. With a $375,000 midpoint and a 60% spread, the band runs from about $288,000 to $462,000.
6. Price the full package. Benchmark total cash (base plus target bonus), equity and total compensation separately. For executives, equity is often the largest component.
7. Approve and document. The CEO signs off at early stages. Later, the board or compensation committee approves the band and the compensation philosophy behind it. Review the band at least once a year.

What moves a CTO salary band up or down?

Company stage

Stage is the strongest driver. Base pay roughly triples from seed to public company, while the equity percentage falls as the company grows. Early-stage CTOs trade cash for ownership.

Industry

AI and physical AI companies pay the most. In Christian & Timbers' 2026 benchmarks, the starting base for an AI CTO ($344,000) is almost the same as for an AI CEO ($347,000), while manufacturing CTOs start at $205,000.

[Table 2]

Location

Bay Area and New York roles carry a premium. KORE1 reports a 15% to 30% premium for technology executives in those markets, and Christian & Timbers estimates 20% to 35% for CTOs. Companies hiring remotely choose between one national band and location tiers, and should state which one they use.

Ownership and scope

Private equity-backed companies pay more cash and grant equity tied to the exit. In Christian & Timbers' study of more than 100 PE-backed technology companies, CTO base pay and bonus targets rose with the size of the business.

[Table 3]

How do bonus and equity fit into a CTO pay band?

Most companies set a separate target for each component instead of one total number:

• Annual bonus. Target bonuses run from 30% to 50% of base at mid-market companies and from 50% to 75% at large enterprises, according to JRG Partners data cited by Christian & Timbers.
• Equity at startups. Seed and Series A CTOs, including founding CTOs, typically receive 1% to 5%. From Series B to Series D the range falls to 0.25% to 1%.
• Equity at public companies. Annual RSU grants typically add $200,000 to $500,000 to total compensation.

Cash and equity trade off against each other. A company that offers less equity than its peers usually targets a higher percentile on base salary to stay competitive.

Common mistakes when setting a CTO salary band

• Copying the VP of Engineering band. The CTO role carries strategy, board exposure and technology risk, and should be priced as its own job.
• Using one average figure. A single number from a salary website is not a band. Use a defined peer group and a range.
• Using stale data. AI leadership pay moves fast. Data older than 12 months will understate the market.
• Setting a narrow range. A tight band leaves no room for raises and forces an early re-grade.
• Comparing offers on base alone. Candidates compare total compensation, especially equity value.
• Benchmarking against the wrong stage. A Series A company that copies public company pay will burn cash; a growth company that copies seed pay will lose candidates.

Frequently asked questions

How much should a startup pay its first CTO?

At pre-seed and seed stage, CTO base salary typically runs from $140,000 to $200,000, with equity of 1% to 5%. Founding CTOs often take a lower base in exchange for a larger stake.

What percentile should a company target for CTO pay?

The 50th percentile is the most common target. Companies hiring in competitive fields such as AI, or offering less equity than peers, often target the 75th percentile.

How wide should a CTO salary band be?

Executive bands are wide, typically 50% to 65% from minimum to maximum, so the same band can fit a first-time CTO and a proven one.

How often should a CTO salary band be updated?

Review the band at least once a year and refresh the market data at least every 6 months.

Do AI companies pay CTOs more?

Yes. Christian & Timbers puts the AI CTO base band at $344,000 to $750,000, compared with $250,000 to $500,000 at technology companies overall.

Test your numbers with the CTO compensation simulator, read AI-native CTO compensation in 2026 or apply to join CTO Club to compare notes with other technology leaders.

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