Fractional Chief Executive Officer

Had you mentioned an outsourced, seasoned, or fractional chief executive officer (CEO) a few years ago, people would have been stumped. Today, these words not only make a lot of sense but also bring value to organizations. But what’s the difference between a CEO and a fractional CEO?

What Is a CEO?

A chief executive officer is an organization’s highest-ranking executive and, basically, a company’s public face.

What Is a Fractional CEO?

Also known as seasoned CEOs, supertemps, and freelancers, fractional CEOs can provide the same benefits as CEOs at a fraction of the cost.

Primary Duties of a CEO

The primary responsibilities of a CEO include:

  • Managing company resources and overall operations
  • Making major corporate decisions
  • Driving profitability
  • Expanding the company
  • Creating company policies
  • Acting as a middleman for communications between corporate operations and the board of directors

Primary Duties of a Fractional CEO

Fractional executives work on a temporary basis. They can work on a part-time schedule or you can call in a fractional CEO whenever they are needed for contract work. This is a great option for business owners who otherwise can’t afford the high prices of hiring a full-time CEO.

How Much Does a CEO Earn?

A CEO earns an average base salary of $781,600. But, salaries can range from $590,600 to $1,007,100. However, like any other job, pay rates vary significantly depending on factors, such as

  • Who you work for
  • Your educational background
  • Prior work experience
  • Additional skills
  • Certifications held

How Much Does a Fractional CEO Earn?

Because a fractional CEO does temporary or part-time work, they don’t get paid a full-time salary, nor do they receive company benefits. But, As of November 2021, CEOs in the U.S. make an hourly wage that averages out to $376, or they may also work on a contractual basis for a set fee. Earnings can range from $284 to $484, depending on the factors that contribute to pay rates

Benefits of Hiring a Fractional CEO

Hiring a fractional CEO has important benefits for your business, including the following:

Experience and Knowledge

While many CEOs are just starting in the industry, a fractional CEO usually has much more experience, knowledge, and skillsets. This is because these experts have already been CEOs for many years and are now settling down as freelancers.

Cost Savings

Many startups would love to have a CEO available to help run and grow their business, but most entrepreneurs can’t afford to pay the high salaries of a full-time CEO. Now you can have your cake and eat it too by hiring a CEO temporarily.

Overcoming Challenges

Some of the challenges businesses today face are trying to grow their business while staying on budget and not knowing when to move forward. Most fractional executives already beat these challenges and can provide professional advice on when to scale and when to hold back.

Fresh Perspective

Many business owners end up stuck while trying to come up with solutions to problems, such as a failing business. A fractional chief executive officer can also act as a consultant to help save your business.


It can be hard for a business owner to make changes to their organization since it’s easy to become overwhelmed with so many choices. A fractional executive will not only help to incite change but also assist with creating and achieving business goals by working as a catalyst for the organization.


A fractional CEO knows what it takes for a business to scale up faster. They have the skills, experience, and capability to plan and execute your business growth.

Trustworthy and Reliable

Fractional CEOS are well-trusted experts in the industry and, due to their excellent problem-solving skills, they are also extremely reliable. Investing in these professionals is the best decision you can make for your startup.

A fractional integrator may cost more than your other staff, but when you start to see your profit margins rise, you will be happy you made the investment.



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