That's definitely the case at my company. To get to the same pay grade that even mediocre managers get promoted to by default, an IC basically has to walk on water.
Contrary to popular narratives, management outside the c-suite is a mostly a thankless grind with no glory. Getting competent people to do it requires some major incentives, and every team, at every level, requires management.
There is an endless availability of engineers who can push JSON to an API, but people who can lead a team, handle cross team comms, architect, and code the hard problems are fairly rare. This is why they command salaries comparable to specialist doctors.
Meanwhile, MBAs are an endless resource, given that that and Law School are the default for people who haven't figured out what they want to do in undergrad.
I would be thrilled to take on my VP or SVP's "thankless grind" for just 25% of their salary. There are probably many more like me lined up, too.