The economics of software development completely abstract out the costs of developer salaries. Software is not a capital-intensive industry, it's labor-intensive. They don't need to wring costs out of the production pipeline, they need to wring more production out of it. Any added cost is worth it.
Companies all want to have software biz economics, but few of them actually know how to run a software business. A room full of high school dropouts is each going to have 1% of the productive capacity of one top-level resource. College grads will have roughly 5%. With decent leadership and mentoring that can go up to 10%. Within a few years they'll hit 10-15%, becoming 'senior engineers'. Title inflation happens because titles, and their requisite salaries, don't matter for the industry. It's the same in finance, so you see a zillion vice presidents.
It makes no sense for a company with hundreds of devs to take a top-level resource and waste their talents on writing code. Top level resources write code to stay sane and relevant, not because the company needs their code.
Companies all want to have software biz economics, but few of them actually know how to run a software business. A room full of high school dropouts is each going to have 1% of the productive capacity of one top-level resource. College grads will have roughly 5%. With decent leadership and mentoring that can go up to 10%. Within a few years they'll hit 10-15%, becoming 'senior engineers'. Title inflation happens because titles, and their requisite salaries, don't matter for the industry. It's the same in finance, so you see a zillion vice presidents.
It makes no sense for a company with hundreds of devs to take a top-level resource and waste their talents on writing code. Top level resources write code to stay sane and relevant, not because the company needs their code.