[phomer]

CTO's come in a couple of different favors, generally ranging from being very technical to be very 'executive'. At worst they're just an extra layer of management, at best they're the visionaries behind the products. Some code, some just talk. The cost for a good one is usually 'equity'.

[babul]

This is why I advocate, where possible, try-before-you-buy. It is an important decision and very costly to correctly.

With regard to people in technically expert roles (CTO\CIO\etc\etc) they really must be able to walk and talk. The hardest part is getting super-talented people on board, and equity or performance related incentives in such cases is a neccessity.