From my perspective this is the way things used to work, then we had the pay equality movement which was largely misinterpreted by corporations to mean "Same title == same pay". The problem is that being a Junior on Team A may have the same cognitive load as being a Senior on Team B. I once led a team that was exactly like that.

Saying "end perverse incentives" makes this seem like some moral oversight driven call-to-action but I think it's more complicated than that.