Chief Information Officer (CIO) Definition, Meaning, and Salary

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Updated October 18, 2022
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What Is a Chief Information Officer (CIO)?

A chief information officer (CIO) is the company executive responsible for the management, implementation, and usability of information and computer technologies.

Because technology is increasing and reshaping industries globally, the role of the CIO has increased in popularity and importance. The CIO analyzes how various technologies benefit the company or improve an existing business process and then integrates a system to realize that benefit or improvement.

Key Takeaways

  • A CIO is a high-ranking executive responsible for managing and successfully implementing the information and computer technology systems of a company.
  • As technology becomes more sophisticated and expands globally, the role of a CIO has increased in popularity and importance.
  • A CIO is typically required to have at least a Bachelor's degree in a technology-related field.
  • A CIO must be agile, responding quickly to trends, changes, and the needs of the organization, its people, and those it serves.

Understanding a Chief Information Officer (CIO)

The role of the CIO has changed over the decades. In the 1980s, the position was more technical as companies maintained their internal computers, databases, and communications networks. In the 2010s, thanks to cloud computing, wireless communications, big-data analytics, and mobile devices, CIOs develop strategies and computer systems that keep businesses competitive in a fast-changing global marketplace.

One major responsibility of a contemporary CIO is to predict the future of computer technology trends that give a business an advantage over others. The day-to-day operations of maintaining a computer system generally fall on a person known as a chief operating officer of IT.

The number of CIOs has increased greatly with the expanded use of IT and computer technology in businesses. The CIO deals with matters such as creating a website that allows the company to reach more customers or integrating new inventory software to help better manage the use of inventory.

Qualifications for a CIO

Businesses generally require that a CIO have a bachelor's degree in a related field, such as computer science, computer information systems, IT management, or database administration.

A master's degree in business administration, coupled with a computer-based degree, can help a CIO run the business side of strategy, development, hiring, and budgeting.

$287,500

The average salary of a Chief Information Officer in 2022, according to the Wall Street Journal. CIO compensation increased 21% from 2021, the Journal reports.

Requirements for CIOs

CIOs must employ several hard and soft skills to excel at this job. CIOs need to know how to run a business because the job requires a lot of knowledge about how a company works from top to bottom.

CIOs should also be aware of technology trends because IT may change in two to three years. This type of person needs to build relationships within the company with other top-level executives and with colleagues in the field.

A CIO must know how every department of a company works to determine the technical needs of each branch of the firm, and this person has to excel at communications. The ability to translate technical terms in ways that non-IT employees can easily understand is essential.

Salary for a CIO

The role of the CIO often pays well, with average salaries ranging from $287,500 to $350,000 for larger companies. Lower-ranking managers for computer and information systems average just under $170,000 per year.

In small companies, CIOs typically make less money and have different job titles. Smaller businesses may have an IT manager, lead database manager, chief security officer, or application development manager.

What Does a Chief Information Officer Do?

A Chief Information Officer (CIO) is responsible for the application of information technology and computer systems in a company. This may include ensuring that the company's hardware and software are adequate for the company's needs, that the company has sufficient online infrastructure, and addressing information security concerns.

What Qualifications Do You Need to Become a Chief Information Officer?

Most companies require their CIOs to have at least a bachelor's degree, along with extensive work experience in an IT environment. Many companies will also require more advanced qualifications, such as a master's or business degree.

How Do You Get a Job as a Chief Information Officer?

According to Indeed, most prospective CIOs have at least ten years of experience before moving up to the C-suite. In addition, they also have more advanced skills, such as project management or IT governance. In order to get hired as a CIO, Indeed recommends gaining strategic planning skills, leadership skills, and management skills.

The Bottom Line

The Chief Information Officer, or CIO, is responsible for implementing IT strategies in a company's operations. This may include managing computer systems, overseeing software development, and ensuring that the company is safe from online threats. With the growing importance of online communications, CIOs are becoming more important in the corporate boardroom.

Article Sources
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.

  1. Wall Street Journal. "CIO Pay Jumps as Tech Moves to the Core of Business."

  2. U.S. Bureau of Labor Statistics. "Computer and Information Systems Managers: Pay."

  3. Indeed. "How to Become a CIO: A Cheat Sheet."

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