Yes, everyone wants to keep their costs low. Especially software companies because most of their expenditure is on personnel. However, in meat-space companies like pharma, chemicals, etc. plant, hard goods, etc. cost more than personnel. A senior-level manager often cannot pay $30k extra just to match Si valley salaries in an auction because they don't have so much room on personnel.

These norms are not set by individuals, but by a system of financial analysts, shareholders (think large pension funds, etc.), etc.