When I said "absurd amount of money" it was more of a rhetorical device, I don't actually think that its unreasonable, and yeah I meant ~500k or so.
Considering the value good engineering and leadership bring to a tech company, this pay makes perfect sense, hell it still may be lowballing the value they generate for the organization. But it is still a high amount of money for a 9-5 individual contribution job compared with other industries.
I'm more making the point that tech used to pay middlingly compared to other professional jobs (doctor/lawyer etc.), and Mechanical/Electrical engineering for the most part still do pay middlingly. I think this encouraged the talented to strike out for startups far more often as the opportunity cost of doing so was lower, especially in times with new technology waves where there was a lot more "low hanging fruit".
I'm not saying the pay is anticompetitive or a bad thing, I'm merely commenting on a trend that I've seen where startups make less and less sense for talented individual engineers and I wonder how that will affect the tech scene in the next decade.
Outside of SV, how is it not "middlingly"? Where can you make $500k+/year in tech working at some corporation??