> that there are really people who are $200K+ better than other devs? I can't really imagine what that level of dev can do much more than those I have worked with who are only paid $50-100K
The 10x myth is real. And having someone with 10x the productivity of another dev isn't a 10x increase in comp, more like 4-5x. So that's an incredible bargain for whoever is smart enough to see it.
I recall a story someone told me a while ago. Software business that did local CoL/prevailing wages. Hired an intern one summer that was just running around in circles around the other, more senior devs. Next summer they tried to get him back but he was already at a large search engine company down in the Bay. Of course, he wouldn't return. That's when they realized a whole class of engineers were completely invisible to them; they lucked out hiring him that summer but there was no chance they could attract someone like him full time.
> I wonder if the perception is distorted by FANNG companies who can afford to simply pay whatever i.e. another 100K for perhaps 10% better candidate just to make sure they get the best?
This has compounding effects. One overachiever stuck with mediocre devs won't be able to do much. But a team of overachievers will ship products like the iPhone. Paying extra for the later make sense if your business model is to ship innovation.