[luckylion]

Germany is the example I know. The individual performance aspect in compensation is very small. High performers tend to go freelance where they can make multiples of what they'd make as employees, because they don't want to provide three times as much value as the average employee for 10% more money.

Companies understand the game, and hire them as contractors. I've seen that play out multiple times: quit your job, come back as a contractor, make twice as much after taxes. I've seen the reverse as well: when freelancers want to "retire" but want to earn money for a few more years, they seek regular employment and coast by.