Why is that? While some people might be that petty, it's very possible that Gravity never hired those kinds of people in the first place.
> It also removes the incentive to improve for the lower tiers, since they have further to move up the ladder before they see an increase in pay.
Why is that? I don't think the idea here is to raise everybody's wage and then institute some kind of 30 year wage freeze. It's to establish a baseline living wage so that none of your employees need to be hustling for other opportunities just to pay their living expenses. They can focus on their work and their lives. Rewarding exceptional behavior is a small cost once that's out of that way, and I don't see why we shouldn't expect to see it here.