Well, I am perfectly OK with the concept. It doesn't work that way in reality though.

First, if someone is better at something than I am, they should be compensated appropriately for that. Appropriateness depends on many factors. Is that skill valuable to the organization, is that skill something that individual uses and how often? Generally speaking the idea that organizations should identify valuable skills is pretty clear, but in practice they don't always do a good job at that.

Most importantly I think we all know that it is rare for corporations to compensate employees fairly. Again, there are many reasons for this, including the difficulty in identifying differences between individuals. Lesser skilled people frequently are overcompensated, higher skilled people are frequently undercompensated.

Now, stepping up on my soap box for a moment, I have worked with a number of skilled people in my life. I am at the stage where I am "that guy" who people go to when something needs to get done. In the past I was always able to identify who that person was, and hopefully figure out when to learn something on my own, and when to go to "that guy" for assistance. In my experience, the go to people are never compensated as they should be. I know companies have to fight to stay in the black, especially given the economic state we are in, but history has shown that as soon as things turn around, the most skilled individuals are going to jump ship and make up for the losses they have encurred. I believe we see a stratification of compensation, and not a true bell curve, which is the real issue.

So, yes I am very much in favor of the best and brightest earning more, and being able to work on more interesting stuff. I am also in favor of utilizing experienced (read as older!) staff to make sure the "youngins" don't end up crashing the car because they just got their license! Further, the dead weight needs to either be compensated at the right level or they need to move on to something appropriate. I am not a spring chicken, yet I have had zero difficulty keeping up with things, and still provide significant support to the "youngest person", and have helped many of those people achieve success faster by mentoring or teaching them skills. Part of my compensation is due to how I assist others in improving their skills.

Unsaid, but maybe what you are really asking, is whether we are afraid of being replaced, overshadowed or outworked by someone younger. No. Not today. Not tomorrow. Not even next year. Maybe 10-15 years from now, but it won't be an issue then!