Not at all. I joined a FAANG company less than a year ago, am not a software engineer, and I'm at about $250k. Senior software engineers are closer to $400k-$500k. See levels.fyi.
EDIT: You mentioned salary, but I think you're referring to total comp. Base salary at these companies is indeed lower than $200k except for non-senior positions.
Total comp is great and all, but unless you're liquidating immediately after you receive a grant then you're adding another variable into the mix of things that need to go right.
And the stock portion of your comp being valuable is dependent on the company doing well. True for FAANG, but that's only because by definition that group is the companies that are doing well!
A $200K equivalent RSU grant spread over four years could end up being worth 20K a year or 200K a year, depending on whether you get lucky or not. Remember that the biggest tech companies 15 years ago included Dell, Delphi, Cisco and Yahoo.
Why aren't you liquidating immediately after you receive a grant? Why would you choose to doubly leverage on your primary source of income, and, as you accurately point out, add another source of risk?
- The company tanks. You maybe retained some of the value of your stock, but you're still on a sinking ship.
- The company takes off. Thanks to loss aversion you feel like you lost money that is rightfully yours. And your idiot co-worker who held just turned up for work in a supercar.
Who knows what the future holds, but if you started at FAANG in 2004 you would have far more than a couple million by now. The financial crisis is a fantastic time to invest in index funds.