I am a manager, and I disagree.
The ranges overlap: an early career engineer will definitely be paid less than an early career manager... but a top engineer should be able to earn more than the vast majority (if not all) of the managers.
The ranges overlap: an early career engineer will definitely be paid less than an early career manager... but a top engineer should be able to earn more than the vast majority (if not all) of the managers.
A good manager is a productivity multiplier which is why the top companies spend an arm and leg training up their managers.
The real issue is that is much easier to manage a group of top engineers than it is to manage a group of engineers who think that they are top engineers.
And because managers tend to be the ones proposing promotions or career upgrades, they reproduce this mindset by selection bias.
The point mentioned in some comment above about changing company if you feel forced to move to management has been proved by this comment. If you see this behaviour in management, no matter if you want to continue your IC career or move to management, run. Find a better place.
Also, using salary to force engineers into becoming managers is a good recipe for losing good engineers. Either because they become managers or because they leave.