CTO vs. VP of Engineering
spolsky: The CEO has decided that you have technical ability but not management ability. He doesn't want to lose your nagios-installation skills but he thinks that an imaginary person whom he has not yet met or hired will be better than you at leading the tech team. He's happy to let you keep the fancy CTO title and perks so you don't lose face, or because he doesn't want a confrontation.I would guess based on your comments and the fact that you're asking this question that politics are not your strong suit. "Politics", b.t.w., is just the natural state of people working together... it can be dysfunctional or functional, but as soon as you have 3 people, you have some kind of politics.Since politics are a major component of management, you may actually be happier not doing management.In situations like this the CEO is probably overestimating his ability to find a Magical VP Technology that will magically solve all his problems (unless he has someone in mind, a buddy from a previous company, for example). Likely he will spend 6-9 months trying to find someone, finally hire someone imperfect in despair, and spend the next year or two discovering that person is incompetent, too. But now I'm really just projecting.If you don't like the CEO it may be time to move on. Life is to short to work with people you don't enjoy spending time with.