The Story of a CTO, or Why You Shouldn't Hand Out "Chief" Titles Too Early

In the early days of a startup, the most urgent need isn’t capital, it’s people. Not just warm bodies, but those rare, high-agency individuals who chase down problems, invent their own solutions, and move faster than the founder. These people are unicorns, and they’re always in demand.

Why You Shouldn't Hand Out "Chief" Titles Too Early

Once upon a time, a young startup found one. He was smart, hungry, technically sharp, and available. He lacked leadership experience, but his enthusiasm was electric, and he got things done. They hired him as their first engineer.

And gave him the title: CTO.

Sounds familiar?

At the time, it seemed perfectly logical: he was the first hire, a true believer, and surely he’d grow as the company grew. Fast forward, product gains traction, the team balloons to 20. That same engineer, who was deploying features solo last year, is now expected to manage teams, budgets, and long-term strategy. 

The only problem? 

No one ever trained him to do any of that. No coach. No mentor. No life experience.

He still thinks like an engineer. Only now he’s got a “Chief” badge on his chest.

And that’s where the bottleneck begins.

• He hesitates to hire people more senior than him; what if they replace him?

• He underestimates hiring budgets; after all, he joined for equity and belief.

• He avoids delegation, he loves building, but managing? That’s a whole new profession.

The startup that scaled so quickly is now stuck, trapped by a well-intentioned, but premature title. 

Because now, that CTO title isn’t empowering anyone. It’s limiting everyone.

The moral? 

Don’t hand out C-level titles in the early days. Your first engineer might be your future leader, but they’re not a Chief yet. Leave room for growth: for them, and for your company.

Why Do Founders Give Out C-Level Titles Too Early?

The short answer? It feels right.

The long one? It’s often a cocktail of pragmatism, loyalty, insecurity, and hope.

Let’s unpack the most common reasons.

1. “He’s been here since day one. This is how we show trust”

First hires are more than employees, they’re survival partners. They shared late nights, debugged together, and risked their reputations for your dream. Giving them a title feels like a natural expression of gratitude and trust.

“We can’t just call him an engineer, he built half the MVP!”

2. “We need to look legit”

In startup land, titles are optics.

When applying for grants, pitching investors, or building a landing page, a polished org chart with CEO, CTO, and CPO gives the illusion of maturity.

“If we call him a developer, no one will take us seriously.”

3. “We can’t pay much, but we can offer a title”

With no budget, your currency becomes vision, equity, and job titles. Giving a C-level role is a shortcut to making the offer feel meaningful.

“We don’t have much money, but you’ll be our CTO.”

4. “We don’t want to lose him”

Without formal recognition, you fear your early hire will leave, and they might. The temptation? Hand out a big title to keep them emotionally invested.

“We can’t afford to lose him, let’s lock him in with a Chief title.”

5. “He’ll grow into the role”

Perhaps the most seductive rationale of all. You’re convinced this person has potential. And maybe they do. But you hand out the title on credit, assuming they’ll evolve with the business. They almost never do, at least not fast enough.

“He’s more of a Lead today, but we believe in him. He’ll grow.”

Here’s the Catch

All of these reasons make emotional sense. They’re human. Sometimes even noble.

But even noble intentions can calcify into bad structure.

Here’s what happens:

• You lock yourself into an org chart that wasn’t designed for scale

• You make it harder to hire senior talent later

• You risk alienating a great contributor who’d thrive as a Lead or Architect, but now feels trapped in a title they can’t live up to

And in the end, it hurts both of you.

What Happens When You Give a C-Level Title Too Soon?

“Chief” is more than a title — it’s a promise of readiness, of strategic leadership. And when that promise is unfulfilled, the fallout can be real.

1. Skills lag behind the role

Being a C-level is about more than domain expertise. It’s about leadership.It means:

• Hiring and building teams

• Making high-stakes decisions

• Communicating with stakeholders

• Delegating and enabling others

But many early Chiefs are still engineers at heart. They’d rather code than hire. Avoid conflict rather than manage it. And they’re quietly terrified of being found out.

“I’ve got the title. I’m not sure I deserve it.”

2. The pressure to perform

The weight of a C-level title creates internal pressure, especially if you’re young or inexperienced. Even without external judgment, the psychological burden is enormous.

It often leads to:

• Avoiding hard conversations (like firing or restructuring)

• Rejecting strong candidates to avoid being outshone

• Clinging to execution work to mask strategic gaps

“If I admit I’m in over my head, I lose everything.”

3. There’s no graceful way back

Once you’ve handed out the title, walking it back is nearly impossible.

Your options?

• Demote them (likely disastrous)

• Hire around them (creates confusion and power struggles)

• Let them stay and stagnate (and watch your company stall)

The cruel irony: the person who got you through the early days is now holding the company back. Not out of malice, but because the role outgrew them.

Red Flags to Watch

If your “Chief” hasn’t grown into the role, you’ll start noticing:

🚩 They avoid hiring strong talent Top-tier candidates get filtered out as “too expensive” or “not a cultural fit.”

🚩 They do everything themselves Not because they’re micromanagers, but because they never learned to delegate.

🚩 They anchor hiring budgets to their own history “I joined for equity, why pay someone €6K?” Because the market changed. They didn’t.

🚩 They resist structural growth They thrive in a small team where they control everything. Scaling feels like losing control.

Bottom Line

A Chief title without the competence to back it up creates a dangerous mismatch.

You:

• Grant authority without capability

• Confuse the team about expectations

• Lose flexibility for future changes

And what’s worse? It’s incredibly hard to fix after the fact.

Enter the “Competence Trap”

This psychological phenomenon explains a lot:

When someone excels in one domain (e.g. engineering), they hesitate to move into another (e.g. management), because it means becoming a beginner again.

If that person also carries a “Chief” title, they’re even less likely to admit they’re unqualified, because the stakes are now personal and public.

How to Avoid the C-Level Title Trap: A 7-Point Framework

Titles matter. They shape how people see themselves and how others interact with them. If used carelessly, they limit both.

If you want to build a scalable company, you can’t design your org chart based on loyalty or sentiment.

Titles aren’t rewards, they’re design decisions. 

And every title you assign early on is a bet on the future structure of your business.

Here’s how to make those bets wisely.

1. Don’t assign C-level titles too early

In the first year of a startup, titles like CTO, CPO, or COO are often more aspirational than accurate. Instead, use functional titles that reflect scope without overpromising:

Tech Lead, Head of Product, Founding Engineer, Operations Lead.

These roles communicate responsibility and allow room for growth, without locking anyone into a structure they’re not yet ready to lead.

Internally, someone can be Head of X. Externally, they can present as Acting CTO or simply “co-founder.” What matters most is clarity within the team around who owns what and how decisions are made.

2. Define a clear path to C-level roles

If someone aspires to become a Chief, give them a roadmap, not a title in advance.

Lay out:

• Which business areas they need to take ownership of

• What leadership and operational skills they need to develop

• How and when their performance will be evaluated (e.g., via a board or founder review)

Think of it as a promotion framework. Until someone can hire, coach, delegate, and drive strategic decisions independently, they’re not yet ready for a C-suite role.

3. Provide structure, mentorship, and real feedback

Growing into leadership isn’t intuitive. You can’t expect someone to “figure it out” just because they were first through the door.

What helps:

• Weekly 1:1s with the founder or senior advisor

• External coaching or peer mentorship

• Hands-on training in hiring, performance reviews, communication

• Candid, ongoing feedback about what’s working and what’s not

A title without support doesn’t create a leader. It creates anxiety, avoidance, or burnout.

4. Design your future org chart before you hire for it

Even if your team is just you and a co-founder, sketch the structure you expect to have 12–24 months from now.

Who will own:

• Product and engineering?

• Sales and marketing?

• Customer success, finance, and HR?

Start by assigning hats, even if one person is wearing five of them. This clarity helps you:

• Spot overload early

• Identify which roles to hire for next

• Understand who’s holding what responsibilities, and where role confusion is brewing

  
  

5. Assign accountability before assigning titles

In an early-stage company, ambiguity kills velocity. Every function, from vision and fundraising to onboarding and Slack admin, needs an owner.

That doesn’t mean one person does all the work. It means someone is responsible for outcomes.

Especially between co-founders, make it crystal clear who has the final call in each domain. 

Without that clarity, you’re one disagreement away from gridlock.

6. Understand how different audiences interpret titles

A “CTO” in a 3-person startup means something very different from a “CTO” in a 300-person scale-up. But external partners, especially from traditional corporate or finance backgrounds, may not make that distinction.

• A VC sees a “CTO” and assumes future tech leadership

• A corporate buyer expects you to manage 30 engineers

• A bank might raise eyebrows if you can’t produce an actual org chart

Titles are strategic assets, but only when they reflect reality inside your team and inspire confidence outside of it.

7. Use titles as tools, not tokens

Yes, titles can be powerful:

• They can attract talent when you can’t yet offer top-tier compensation

• They can create a sense of ownership and motivation

• They signal seriousness to investors and recruits

But only if:

• Everyone agrees the title reflects responsibilities, not just tenure

• You’ve established how roles will evolve as the company grows

• There’s a clear support system and development track behind the title

Giving someone a Chief title isn’t inherently wrong. Giving it without structure, strategy, or foresight, that’s where the damage starts.

In Short

It’s okay to give ambitious team members ambitious challenges. In fact, it’s essential.

But instead of rushing to hand them a title, give them:

• A well-defined role

• A clear path to grow

• The support and tools to earn their next step

Let the title be the outcome of growth, not the promise of it.