This is true in my experience. But it is a feature, not a bug.
FAANGs, and SV more generally, have figured out how to leverage the effort of top-quality engineers to create tremendous business value. This is reflected in the performance of these stocks in the public market.
Other parts of the economy do not have the need for such high levels of technical skills. They simply don't know what to do with it! Hence they cannot pay ICs as high either.
We will eventually get to a point where few engineers, controlling larger number of computers, can produce significant business value. IC salaries will rise then.
That is not my experience. FAANG pays significantly more for the same level of management.