In some companies the CTO role is more important than others. If you are a tech startup, the CTO is likely a founder if not the main founder. However, there are also a lot of non-technical companies where the strategy is simply to build tech stuff as cheap and efficiently as possible while not getting in the way of the founders who tend to be non technical types running a company where tech is just a means to an end rather than core to what they do. Just because you have an app or a website does not mean you need a CTO. You might just outsource that to an agency even.
I've seen this a lot in the Berlin scene where a non technical founder team starts looking for a non founding CTO to build their thing and they end up with some engineer getting the label slapped on them. My advice to companies like that is that they should be looking for a VP of engineering instead and not slap CTO role on the relatively inexperienced early engineers they'll manage to attract to their company. More often than not this ends in tears; especially when equity is involved.
Often the roles of VP of Engineering and CTO are confused. They can be separate roles. Not all CTOs are good at managing large teams. And some engineering managers know a thing or two about tech. However, a VP of Engineering can be very hands off when it comes to tech. Building stuff is not their function. Managing the people that do is.
Lots of scale ups need one and the role is about nurturing and growing the tech team, not necessarily about having a lot of opinions on what the tech should be (other than be boring, low risk, predictable type stuff). Another difference is that a VP of engineering is not a C level executive and also not a founder. They are there to grow the business and make sure the tech team delivers whatever product needs delivering and that the right people are in place to make that happen. IMHO VP of Engineering is closer to and HR role than a tech role actually. You wouldn't expect them to write a single line of code. Lots of companies end up having both roles. Especially those with founding CTOs that turn out to not be ideal at managing their tech team.