It is... but the top tier companies pay dramatically more than the next tier down. Like, we're talking 30-50% difference once you count total comp.
(it's interesting, base salary is somewhat comparable... but stock and bonus are a big part of comp if you work at a FAANG company, and those... largely don't exist at third-tier companies.)
The top-tier employers also do a lot to bring up salary pressure on the lower tiers; if the FAANG companies didn't pay so much, the most desirable people wouldn't leave the lower paying companies, wouldn't make room for someone less desirable, etc... That's how I got my start; I didn't go to college, but I did work my way up through those smaller companies, into larger companies that paid better and better.