What to Know Before Becoming a Startup CTO: Salary, Skills, and Equity

1. Salary: Does it rise or fall when moving to a startup CTO role?

Moving from a large internet company to a startup as CTO does not guarantee a higher salary; many engineers even accept lower pay. Senior engineers at giants like BAT typically earn more than the 400,000 CNY annual salary offered by the startup example.

Startups often lack sufficient funds and may underestimate market salary levels, offering 200,000–300,000 CNY per year, which is already the average for experienced engineers in first‑tier Chinese cities.

2. What kind of engineer is suitable for a CTO?

The answer is "two specialties, many abilities".

Two specialties: outstanding technical expertise and strong team‑leadership/management skills.

Effective team leadership means managing development schedules, caring for team members, and coordinating with product, operations, and marketing.

Key practices include:

Commit to controlling development progress and keeping overtime to a minimum.

Politely decline unreasonable overtime requests, explaining the trade‑offs.

When critical deadlines arise, clearly communicate the importance so the team willingly works extra hours.

A CTO must also possess personal charisma and responsibility, earning the respect and loyalty of the engineering team.

3. Key considerations before joining a startup

Beyond salary and skills, evaluate the founders' ability and character; a strong founding team can justify a lower salary.

Consider joining with trusted friends you know well, but be aware that friendships can strain under startup pressure.

If joining an unfamiliar team, assess:

Founders' competence and integrity.

The realism of the promised equity ("big cake").

Understanding equity: Equity is a contract to purchase shares at a set price after a vesting schedule. Typical vesting: four years with a one‑year cliff; if you leave before the cliff, you lose unvested shares. Exercise price is lower in early funding rounds, increasing potential upside. Potential upside depends on the company's market growth and eventual IPO.