CTOs Leading in Stock Grants as Tech Role Gains Importance
In recent developments, Chief Technology Officers (CTOs) have become significant players in the corporate world, often receiving the most stock grants after Chief Executive Officers (CEOs) and Managing Directors. They have outpaced both Chief Operating Officers (COOs) and Chief Financial Officers (CFOs) in terms of these valuable rewards. This trend aims to keep essential talent within companies as they prepare for public listings. In fact, data indicates that employee stock ownership plans (ESOPs) have grown fourteen-fold over the past three years.
Dinkar Pawan, Director at Deloitte India, explains, “The role of the CTO is increasingly critical as more businesses transition to a digital-first approach. Technology is no longer just an aid; it’s fundamental for achieving profit, security, customer satisfaction, and overall value.” He notes that during investor presentations, CTOs often stand alongside CEOs and other key executives to build investor trust.
Deloitte’s recent study looked at 60 companies that went public over the last three fiscal years, focusing on the long-term incentives given to employees and leaders. The research, titled “India’s Pre-IPO Long Term Incentives Trends,” found that CTOs received nearly 39% of the equity grants awarded to CEOs, compared to just 14% for Chief Human Resources Officers (CHROs).
For companies that went public in fiscal year 2023, the average ESOP pool was about ₹102 crore. This number jumped significantly, reaching ₹1,503 crore for those that went public in fiscal year 2025. The report revealed that CTOs received more ESOP grants than COOs and CFOs, who received 35% and 30% of the grants offered to CEOs, respectively.
Alok Goyal, a partner at Stellaris, a venture capital firm, pointed out, “CTOs play a crucial role in ensuring a company remains competitive, especially with rapid advancements in AI. Effective CTOs help maintain a company’s unique technology offerings. They’re hard to find, so offering meaningful stock options is essential to keep them within the company and ensure ongoing innovation.”
The disparity in earning potential between CEOs and other executives is notable. For instance, if a CEO earned around ₹37 crore in fiscal year 2025 through stock grants during an IPO, CTOs and other CXOs typically earned about ₹9 crore. These stock grants can take various forms, including employee stock options and long-term incentive plans.
Hiring for CTO positions has surged recently, although experts warn that this trend may slow down. As the Indian capital markets mature, there has been a notable rise in public listings. After an impressive year in 2021 with 47 IPOs generating ₹1.03 trillion, the excitement dwindled in 2022 and 2023. However, 2024 has seen a revival, with 90 IPOs raising ₹1.59 trillion, and over ₹75,000 crore raised in the current year alone.
In many emerging tech startups, a significant portion of the payroll goes to tech teams. Often, one of the founders takes on the CTO role, while other co-founders may become CEOs or COOs. This situation explains why many early-stage companies struggle to fill technical roles effectively.
“There’s a growing demand for skilled CTOs because they are key to developing outstanding digital products. However, recruiting good CTOs is challenging and can take several months,” explains Pranshu Upadhyay from the talent search firm Michael Page. He adds that the appeal of companies nearing an IPO makes them attractive for CTOs seeking tangible rewards.
The finance sector is also vital for IPO-bound companies, and CFOs are increasingly being compensated through long-term incentive plans to attract and retain talent. While the demand for CTOs surged post-pandemic, it may stabilize as companies become more cautious about spending. Conversely, the need for skilled CFOs remains strong, especially as they play a critical role in any company’s IPO journey, second only to the founder or CEO.
