The general sentiment is that startups pay lower. Yes, startups have the potential for a higher payoff in the long run but I'd like to think that most intelligent people realize the long odds on that one.

"Am I missing something here?"

Not calculating in the factor that money ain't everything. To some folks, the ability to be on the ground floor of a small group and driving the future of a company is a lot more meaningful than being one of a 50,000 member army who will have little impact on the big picture.