Yes, I believe this is more a more accurate assessment. I bet at most large and medium-sized tech companies, there's not a huge difference in compensation among rank-and-file employees (both individual contributors AND managers), with some managers earning more and some individual contributors making more. Probably no more than a 2X difference between what a junior engineer makes and what a senior engineering manager makes.

However, there's going to be a HUGE gulf between what they make and what the senior executives make--anywhere between 3X and 300X. That's where you go to escape the "salary squash".