I kinda agree with this sentiment, I've certainly known plenty of software engineers who weren't half what they were getting paid, mostly juniors but also a few seniors. But I've also known plenty of software engineers who were worth every cent. However, I'd argue the bigger problem is other engineers are underpaid, especially considering many types of engineering require a strong grasp of advanced mathematics and physics. Then again, most professions in this world are woefully underpaid.
1. How differentiated is engineer output in a measurable way?
2. How much profit is unlocked by the engineers work at market rates?
(2) tells you how much room there is for an engineer's share of the profits to grow. In traditional engineering fields there often isn't as much profit to share everything comes from margin off a physical product).
Physical constraints also mean that it's difficult to differentiate in traditional engineering. The problems my EE friends solve are harder mathematically but they're almost all using design patterns and even components created decades ago, it's unusual to have a chance to do work that's "different" in a way the market might care about.
