This is true within companies but at least in Software is often not true between companies. E.g., the 2nd/3rd-to-last rung of a FAANG IC ladder makes much more

This is true within companies but at least in Software is often not true between companies. E.g., the 2nd/3rd-to-last rung of a FAANG IC ladder makes much more than managers and directors at most other companies in the USA. This is significant because it's much easier to become a senior IC at a FAANG than to become a Regional Director at the typical company in the USA.