To be fair, this is
not an easy transition to make, if good processes weren't started from day one, which is the standard state of most early startup technical projects.
Everything from source control commit logging, to conflict resolution, to development database snapshot sanitation scripts, to audit/error log management, to configuration management, to compliance, to QA handoff, to deployment automation, etc. These things are not trivial to begin working on while training new hires, working on new feature requests and existing bug lists, at a time when 99% of domain knowledge is in that person's head. And all of them are necessary for your CTO to be able to delegate effectively for his role.
Not knowing anything about your exact situation, my guess is that none of these things were properly set up from the beginning, and now your CTO is faced with nearly impossible circumstances that he's either unwilling or embarrassed to acknowledge. He may believe that trying to explain to the other stakeholders about the importance of process and technical debt reduction will go over poorly in the face of increasing business requirements that must be done nownownow. Horrible approach, but it happens, and happens often.