[medmunds]

> if you tell people that the only way they can make more money is by being manager or senior managing level...

This is actually a separate issue. A healthy engineering organization needs to have parallel technical and management tracks, with similar growth opportunities (both compensation and responsibility) at every level. On the tech track, think about a path that leads to CTO.

Of course, you'll still get people (in either track) arguing they want a higher level than they merit.