I have seen it work. I think that the key is in transition, company must change how it treats them as they progress. It is not just about salary and may not even primary salary.

They need (not just want, but need) progressively more and more autonomy, bigger and bigger tasks, more and more responsibility. It also helps when the company culture/management is such that they can talk openly about their preferences and dislikes. It does not mean they should get everything they want, but there should be no "punishment" for saying what they want.