In companies I am familiar with, pay bands and total comp are roughly equivalent between:
senior engineer ≈ engineering team lead
staff engineer/tech lead ≈ engineering manager
principal engineer ≈ senior engineering manager
Reiterating that management is not a "promotion" from senior engineer, but a track switch.
That said, the maximum compensation ceiling is ultimately higher on the management track at director/vp level. Personally, no thanks, don't want that job. Staff+ IC is where it's at for me.
> Who makes more money, a "staff engineer" or an "engineering manager"?
I think engineering manager is the easier path to advancement. Compare for example Google Staff Software Engineer (L6) vs Engineering Manager (L6). [1, 2] The latter gets paid more but IMHO the ladder expectations are easier to meet, and even more so when advancing to L7.
This is admittedly cynical, but to some extent I think managers are often judged by the size of their empire, while engineers are judged by their (individual or team) accomplishments, which includes setting the overall project design and filling in gaps between the smaller pieces delegated to other engineers. Building a large empire is easier but can be counterproductive. To accomplish things you also need good design oversight, technical mentorship, etc. that managers aren't expected to deliver.
A lot of people who are passionate enough about software stay on the SWE ladder in spite of the relative difficulty. I know someone who switched to the management ladder then eventually (at great trouble) switched back; he nearly got down-leveled in the process.
There are great engineering managers out there of course, but I think in general the difference in expectations is real and unfortunate.
My belief is that while eng manager empire building was the easier path to get promoted before 2022, it's not anymore, for two main reasons:
1. HC doesn't accrue like that anymore.
2. Many organizations are looking to delayer; harder to promote up to director when your org went from 9 runs to 5.
I hear a lot of the focus going to Tech Lead Manager roles--fewer reports but more hand-on keyboard than EM roles of the past.
I need to ask for a raise, because I've probably been doing both of those jobs.