Does the second group also end up skewing remuneration in their favour? For example, a tech company where managers are paid over the odds, while the passionate engineers who do a lot of the technical heavy lifting are paid less.
Source: am middle management.
The fastest way to go from Senior Manager to Director is to get as many people as possible promoted to Principal Engineer, or hire more PEs. Or better yet get your Principal Engineer promoted so that they have to become your peer.
So the incentives were aligned. The manager was incentivized to put you up for promotion as soon as they thought you might be ready, not the other way around. The toxic part was actually that your manager didn't have final say.
Even when they thought you were ready they had to convince others in an overburdensome process.