A manager has hiring, firing and often budget responsibilities. Also over-looked other HR responsibilities like ensuring policies are being followed which are

A manager has hiring, firing and often budget responsibilities. Also over-looked other HR responsibilities like ensuring policies are being followed which are usually there because there are laws the company has to comply with, like sexual harassment. There is more risk to the larger company if a manager acts unethically or worse, illegally, with these responsibilities. Given that a legal/ethical issue can potentially cost a company a lot of money, a good manager should be paid more in addition to other actual area of expertise responsibilities they have. If they are more of a supervisor or team lead, literally managing workloads of people without the budget or hiring/firing HR responsibilities then maybe one could argue they may not necessarily make more than other Software Engineers.