Equity compensation is both the cause and solution to this, I think. Newer employees are favored on a cash salary basis, but older ones have lower option strike

Equity compensation is both the cause and solution to this, I think. Newer employees are favored on a cash salary basis, but older ones have lower option strikes and/or larger equity grants. Roughly speaking, any new equity grant from a company your parents haven't heard of is worth $0 when you join. If your employer is successful, these grants become worth actual money, and that is your effective raise. If not, then you can and should job hop instead for a cash salary increase. On the flip side, since the new equity grants are worth approximately $0 at signing, employers have to match the actually valuable equity that candidates are receiving with cash salary instead.