They absolutely do, but those companies end up getting labelled "burnout factories" like Applied Intuition or Scale AI and as a result have trouble both recruit

They absolutely do, but those companies end up getting labelled "burnout factories" like Applied Intuition or Scale AI and as a result have trouble both recruiting good seniors or retaining their juniors long enough for them to become senior. At the end of the day, companies run by adults treat their employees like adults and don't try to stiff them out of a misguided desire to save $100k over three years.