In my org, we have "tech manager" roles, where the compensation is similar to people manager roles. Some sr. tech managers end up with a direct report or two. At the end of the day, upper management asked and got the message that we care more about compensation than titles and implemented this in response. Everyone is encouraged to switch roles, but it feels like it's less about development per se and more about auditioning for upper management (both finding out who plays ball and has the skills).