[quantumhobbit]

"14. Because only a few people will be used in engineering and most other areas, ways must be provided to reward good performance by pay not based on the number of personnel supervised."

This is something large corporations struggle with today. The prevalence of of startups seems to indicate that there isn't a good alternative to the track of promoting good engineers to management. Engineers who want to do design work don't want to be managers.

I'm reminded of a charter school I read about in the NYT(don't have the link sorry) that was unusual for paying its best teachers more than the principal. They had a principal who understood that even though he was the teachers boss he needed to attract good teachers with high salary.