Cost model

The salary is not the cost. Here is the whole number.

Most comparisons of full-time versus fractional technology leadership quote a salary and stop there. Employer benefit costs run about 30 percent of total compensation, and they are not optional. This works the number from published federal data, shows every step, and lets you change any assumption you disagree with.

National figures for Computer and Information Systems Managers, SOC 11-3021. Pick the mean if you are hiring above the midpoint, or in a high-cost metro.
%
Benefits as a share of total compensation. BLS reports 30.1 percent for private industry workers as of March 2026. Change it if yours differs.
$
Annual. Whatever figure you are working with, from any provider. We do not publish rates here because scope, not a rate card, sets them.
Base salary $175,140 Before any employer costs.
Fully loaded annual cost $250,558 Salary plus employer benefit costs. Excludes recruiting, equity and severance.
Difference vs your figure $160,558 Annual, at the fractional spend you entered.

How the number is built

Base salaryBLS OEWS median, Computer and Information Systems Managers, May 2025 $175,140
Employer benefit costsAt 30.1 percent of total compensation, per BLS ECEC, March 2026 $75,418
Fully loaded annual cost $250,558
Your assumed fractional spendThe figure you entered above $90,000
Difference $160,558

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We will send the written breakdown shortly. If you want these numbers argued against your actual situation, the AI-Readiness Diagnostic is the next step.

Read this before you use the number

Cost is the easy half of the comparison.

A cost model is not a business case. These are the things the arithmetic above does not capture, in both directions.

What the number leaves out

Recruiting fees, equity, bonus, payroll taxes above the BLS benefit average, office and equipment, and the cost of a bad hire in a role this senior. All of these push the full-time figure higher than what is shown.

The BLS benefit share is an all-industry private sector average. Executive packages usually carry a heavier load than the average worker, so 30.1 percent is a conservative input, not an aggressive one.

Where full-time wins

A fractional executive is not a full-time one at a discount. If you need someone in the building every day, running a large internal team, carrying a P and L, or owning a multi-year transformation end to end, hire full-time. The cost gap is real and it is still the wrong trade.

Fractional works when the need is executive judgment and accountability rather than executive hours. If you are unsure which you have, that is a conversation, not a calculator.

How engagements are shaped

Engagements start with a fixed-fee AI-Readiness Diagnostic, then a monthly retainer or a scoped project. Most clients are organizations of 100 to 2,000 people with a board, an auditor or a regulator who will eventually ask how the system decided.

Who this is not for

This is not the right fit if you are looking for a proof of concept, a chatbot, or the cheapest way to say you are doing AI. The work here is the control environment around AI, and it is worth paying for only when someone is going to have to sign for it.

Sources

Questions about what a CTO costs

What does a full-time CTO or CIO cost per year?

The national median base salary for the federal occupation covering technology leadership, Computer and Information Systems Managers, is $175,140 as of May 2025. Adding employer benefit costs at the published rate brings it to roughly $250,558 a year. The mean rather than the median puts base at $192,160 and the loaded figure at about $274,907.

Why divide by the benefit rate instead of adding it to salary?

Because BLS quotes benefits as a share of total compensation, not as a markup on wages. For private industry workers, wages are 69.9 percent of the total and benefits are the remaining 30.1 percent. So the total is base divided by one minus that share. Treating 30.1 percent as a markup on salary understates the real cost by roughly twenty thousand dollars.

What does the figure leave out?

Recruiting fees, equity, bonus, payroll taxes above the BLS average, office and equipment, and the cost of a bad hire in a role this senior. Every one of these pushes the full-time number higher than what is shown here.

Do you publish fractional rates?

No. Scope sets the price, not a rate card, so a published number would be misleading. This page takes whatever figure you are already considering, from any provider, and shows the difference against the full-time cost.

The cost question usually is not the real question.

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