The uncomfortable truth
Individual contributors shipping features with AI now generate measurably more value than most management roles. Your org chart reflects legacy structure — not where value is actually created today.
Your CFO may object. Directors will be uncomfortable when ICs earn more than they do. Be explicit: if leaders want premium compensation, they should return to building — and lead by example.
Choice
Maintain existing comp framework and lose critical talent. Or adapt the framework and build competitive advantage. There is no third option.
The timeline
AI-native engineers are evaluating multiple offers right now while your HR team debates band exceptions. This will not last.
In less than 18 months, aggressive companies will have hired the available talent. In 12 months, you will compete against offers you cannot match. By next year, this talent will have stopped responding to recruiters from companies that moved slowly.
Urgency
Organizations making these decisions in the next 90 days will build meaningful advantages. Companies waiting are explaining hiring failures to their boards in 2026.