In essence, there's the E9/O1 problem. An elite engineer with 25 years of experience simply knows more than an entry-level manager. Organizations try to solve this by dual-laddering and saying that there are "Director-equivalent" engineers (e.g. Staff or Principal) and so on, to rectify the obvious injustice of a scenario where a fresh MBA is seen to outrank the best engineers because he manages a team and they don't. The problem is that this dual-laddering makes it worse, because it's so much harder to move up the engineering ladder. If you're a Software Manager I at Google, you have to shit five or six different beds not to make Director within ~6 years and VP within ~12. On the other hand, making Principal+ Engineer is quite difficult, especially if you're not in MTV. So it perpetuates a false equivalency in which the managerial and product folk are gods (because of their swift, easy promotions) while most of the engineers are leftovers.