The Difference Between a VPE and a CTO and How to Climb Up the Ladder

by | Apr 5

11 min read

Have you ever wondered about the roles of a Vice President of Engineering (VPE) and a Chief Technology Officer (CTO)?

Even though both positions require overseeing engineering teams and adding value to product development, there are well-defined differences between them. Each comes along with their unique responsibilities and sets of skills, as well as their methodologies in collaborating innovational drive and success in technology-driven organisations.

What is a VPE and the breakdown of the VPE role

The Vice President of Engineering (VPE) is a high-ranking executive responsible for supervising the engineering team within an organisation. The main objective of this position is ensuring the guarantee that the engineering team delivers high-quality products or services efficiently and effectively which involves leading the engineering team in designing, developing, testing, and maintaining products or services.

Some of the key responsibilities of a Vice President of Engineering (VPE):

  • Technical Leadership: showing technical leadership to the engineering team as well as guiding them in the development of services or products that are in line with the organisation’s goals. A VPE is also responsible for ensuring that its team has the necessary skills and resources to reach its goals.
  • Strategy: a VPE works closely with other members of the executive team to define the company’s engineering strategy. This involves setting goals and objectives, identifying key performance indicators, and developing plans to achieve them.
  • Collaboration: a VPE collaborates with other departments, such as marketing, sales, and customer support, to ensure that the engineering team is meeting the needs of the company’s customers. They also work with product managers to define product requirements and ensure that they are being met.
  • Process Improvement: a VPE has the responsibility for continually improving the engineering processes and methodologies used by the team. This involves identifying areas for improvement and implementing changes that lead to greater efficiency, productivity, and quality.
  • Talent Management: a VPE has the responsibility of recruiting, developing, and retaining top engineering talent. They are also responsible for ensuring that the team has the necessary training and resources to keep up with the latest technologies and trends.

Education and Certification Requirements and Salary Expectations

Educational requirements can vary depending on the organisation, the industry, and the level of experience.

South Africa

The typical educational and certification requirements are as follows:

  • A bachelor’s degree (BA) in computer science or engineering.
  • Some companies may prefer an experience level with a minimum of ten year’s working experience in the field or industry.

Based on averages:

Entry level: R900 0000 annually

Average: R2 640 000 annually

Experienced workers: up to R10 112 184 annually

Source: https://za.talent.com/salary?job=engineering+director 

United States of America

The typical educational and certification requirements are as follows:

  • A bachelor’s degree (BA) in computer science or engineering.
  • Some companies may prefer more advanced degrees such as a Master’s or Ph.D. in engineering or a related field.
  • Several years of experience in engineering or technological management positions, preferably in the same industry.

Based on averages:

Entry level: $145,929 annually

Average: $182,502 annually

Experienced workers: up to $225,000 annually

Source: https://www.talent.com/salary?job=vice+president+engineering 

United Kingdom

The typical educational and certification requirements are as follows:

  • A bachelor’s degree (BA) in computer science or engineering.
  • Some companies may prefer more advanced degrees such as a Master’s or Ph.D. in engineering or a related field.
  • Several years of experience in engineering or technological management positions, preferably in the same industry.

Based on averages:

Entry level: £75,000 annually

Average: £85,000 annually

Experienced workers: up to £125,000 annually

Source: https://uk.talent.com/salary?job=vp+of+engineering

Disclaimer: these salary amounts are current with the time the article went to publication

Bonuses are based on different factors, depending on the industry, organisation, and performance metrics. These determining factors can include looking at how risk management was handled, meeting strategic goals and contributing to cost reduction, the company’s financial performance, and employee and stakeholder satisfaction. 

These factors are tied to performance-based incentives and it remains the company’s discretion to have bonuses paid out or not. While bonuses are a common form of compensation, there are no guarantees that a CTO will be eligible for it in any given year.

What is a CTO and the breakdown of the CTO role

A Chief Technology Officer (CTO) is a high-ranking executive in an organisation, responsible for overseeing the development and implementation of technology-related strategies and initiatives. The CTO is in charge of driving the technological direction of an organisation, and making sure that the technology infrastructure supports its overall business goals.

The role involves working closely with other executives and departments within the organisations to align the organisations’s technology goals with its broader business objectives.

Some of the key responsibilities of a Chief Technology Officer (CTO):

  • Technology strategy: making sure the development and implementation of a technology strategy that aligns with the overall business objectives of the organisation.
  • Technology innovation: to identify the opportunities for technological innovation, and stay up to date with the latest advancements in technology.
  • Product development: oversee the development of new products, and ensure that they meet the organisation’s business and technological requirements.
  • Technology operations: manage the organisation’s technology operations, which includes hardware, software, and network infrastructure.
  • Team management: guiding a highly-skilled team to deliver on the organisation’s technological objectives.
  • Security and compliance: making sure that the organisation’s technology infrastructure is secure and compliant with relevant regulations and standards.
  • Vendor management: managing vendor relationships and ensuring that the organisation is receiving the best value from its technology investments.
  • Budgeting and financial management: to develop and manage the technology budget, and ensure that the organisation receives a good return on its technology investments.

Education and Certification Requirements and Salary Expectations

Educational requirements can vary depending on the organisation, the industry, and the level of experience.

South Africa

The typical educational and certification requirements are as follows:

  • A bachelor’s degree (BA) in computer science or engineering, some organisations may require a higher degree such as a Masters.
  • Some organisations may require that a CTO has a Master of Business Administration (MBA) due to the business management elements.
  • Some organisations may require certification in IT Management, Project Management, Information Systems Management, Strategic Business Management, Cybersecurity, Data Analysis, and Business Systems Analysis.

Based on averages:

Entry level: R1 050 000 annually

Average: R1 170 000 annually

Experienced workers: up to R9 084 000 annually

Source: https://za.talent.com/salary?job=cto  

United States of America

The typical educational and certification requirements are as follows:

  • A bachelor’s degree (BA) in computer science or engineering, some organisations may require a higher degree such as a Masters.
  • Some organisations may require that a CTO has a Master of Business Administration (MBA) due to the business management elements.
  • Some organisations may require certification in IT Management, Project Management, Information Systems Management, Strategic Business Management, Cybersecurity, Data Analysis, and Business Systems Analysis.
  • Should have at least 15 years of working experience in the relevant field to be considered for a CTO role.

Based on averages:

Entry level: $125,000 annually

Average: $160,066 annually

Experienced workers: up to $220,000 annually

Source: https://www.talent.com/salary?job=vice+president+engineering 

United Kingdom

The typical educational and certification requirements are as follows:

  • A bachelor’s degree (BA) in computer science or engineering, some organisations may require a higher degree such as a Masters.
  • Some organisations may require that a CTO has a Master of Business Administration (MBA) due to the business management elements.
  • Some organisations may require certification in IT Management, Project Management, Information Systems Management, Strategic Business Management, Cybersecurity, Data Analysis, and Business Systems Analysis.

Based on averages:

Entry level: £70,000 annually

Average: £82,222 annually

Experienced workers: up to £95,000 annually

Source: https://uk.talent.com/salary?job=vp+of+engineering

Disclaimer: these salary amounts are current with the time the article went to publication

Bonuses are based on different factors, depending on the industry, organisation, and performance metrics. These determining factors can include looking at how risk management was handled, meeting strategic goals and contributing to cost reduction, the company’s financial performance, and employee and stakeholder satisfaction. 

These factors are tied to performance-based incentives and it remains the company’s discretion to have bonuses paid out or not. While bonuses are a common form of compensation, there are no guarantees that a CTO will be eligible for it in any given year.

Both the VPE and CTO role share some significant similarities and still have their differences when it comes to what responsibilities fall under those specific roles.

In conclusion, the VPE’s primary focus is placed on managing the organisation’s engineering team and making sure that high-quality services and products are delivered efficiently and effectively. The CTO takes on a broader set of responsibilities, which include the development and execution of the organisation’s technology strategy, building relationships with other departments within the organisation, and the management of budgets.

Having a clear understanding of the differences between these two roles is important for professionals who are looking to advance their careers and take on new leadership positions.

Moving Up the Ladder from a VPE to a CTO

Moving from a Vice President of Engineering (VPE) role to a Chief Technology Officer (CTO) position is seen to be a challenging yet rewarding career transition for technology professionals.

As a VPE, you may have already established yourself as a leader with the necessary skills within your organisation, showcasing your initiative in the field and building a strong technological outlook and knowledge surrounding your organisation’s needs and objectives.

The position of a CTO comes with a broader set of responsibilities that will require a VPE to reevaluate the sets of skills they currently have and what of those skills might need extra development to successfully execute the role of a CTO.

There are certain steps that a VPE can pursue to successfully transition into a CTO role, which could include brushing up certain skills to acquiring extra educational or certification requirements.

Here are some of the crucial details to look out for and develop in order to be able to make a transition from a VPE role to a CTO role, and make sure you’re properly equipped to step into a higher leadership position.

  • Gain experience in different technology areas: As a VPE, you may already have a strong background in a specific area of technology. However, to become a CTO, you’ll need to broaden your knowledge and experience in different technology areas. This can include emerging technologies, software development, cybersecurity, and more. Consider taking courses or attending conferences in different technology areas to expand your knowledge and stay up-to-date on industry trends.
  • Develop leadership and management skills: As a CTO, you’ll be responsible for leading a team of technology professionals and managing the organisation’s technology strategy. To prepare for this, focus on developing your leadership and management skills. This can include things like communication, decision-making, and team building. Seek out mentorship opportunities, attend leadership courses or workshops, and read books or articles on leadership to improve your skills.
  • Expanding your network: Relationship building within the technology industry can be critical to advancing your career. Attending industry conferences, joining professional organisations, and seeking out mentorship opportunities to expand your network and gain exposure to new ideas and opportunities. You can also use social media platforms that are focused on professionals connecting with other professionals in the industry and building relationships with them.
  • Take on additional responsibilities: Look for opportunities to take on additional responsibilities within your current role or department. This can help you build the skills and experience necessary for a CTO position, such as managing budgets, overseeing projects, and building partnerships with other departments. Volunteering for cross-functional projects or initiatives can also help you gain exposure to different parts of the company and develop your skills.
  • Consider additional education or certifications: Earning additional education or certifications can demonstrate your commitment to advancing your career and developing your skills. This can include advanced degrees in technology or business, as well as professional certifications in specific technology areas. Consider pursuing a Master’s degree in a relevant field, or earning a certification in a specific technology area like cloud computing or cybersecurity.

Making the transition from a Vice President of Engineering (VPE) to a Chief Technology Officer (CTO) role is a challenging and rewarding career move that requires dedication, hard work, and a willingness to learn new skills. 

With the constant development of leadership and management skills, adding on knowledge and experience in different technology areas, and strengthening networks within the industry in a CTO role, the means of preparing for the CTO role heightens the success you can bring to it. Pursuing additional education or certifications can also demonstrate your commitment to advancing your career and developing your skills.

The journey from a VPE to a CTO is an opportunity to make a significant impact within your organisation, driving its success through the development and execution of its technology strategy.

With dedication and focus, you can achieve your career goals and establish yourself as a respected leader within the technology industry.

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