> "...ensure some new hire from a hot company doing the same job as you is not making 2-3x your salary"
Given the number of young people in software and entering software, seniority based pay and losing the ability to job hop for increased salary is pretty much the last thing on earth they would want. It would also kill the company's ability to hire top talent by being able to offer more money.
My example is based in real life, we hired a engineer from facebook and they matched his comp, which me and a few co-workers found out was 2.5x what we made. This person did the same job as us and contributed nothing out of the ordinary, he was also the same level as us which really stung. Stuff like this is rampant across tech and having secret pay bands and not upping your pay for existing hires(to match market) as its too high of an increase per corporate(also another real life example) just sucks. Especially when the CEO's net worth goes up 5x in the few years at the company.
Given the number of young people in software and entering software, seniority based pay and losing the ability to job hop for increased salary is pretty much the last thing on earth they would want. It would also kill the company's ability to hire top talent by being able to offer more money.