Does this logic work for lawyers? "Biglaw" firms are similar to FAANG in that it is a handful of companies that offer very high comp (235k for first year). There is a deluge of folks that apply from all universities to biglaw but generally they primarily hire from top tier law schools and even then not all make it.
Similar for Big 3 consulting firms (BCG, Bain, McKinsey) in that there is a huge application pool for positions but they are difficult to get and provide high pay.