You're absolutely on the money here, but I'll take it a step or two further:
I've seen repeatedly that management is the reward for top performers, your "one percenters." In the IT world, this normally means that the best resource in a given group or department is plucked from the worker-bee ranks and parachuted into a mangement role, often in a derpartment other than that in which he or she previously worked.
The net effect of this move is really a double-whammy: not only have you removed someone from a role in which they were highly proficient and placed them in a position in which they are (likely, and at least initially) entirely incometent, but you've left a gaping hole in their previous department. That department has now lost their top performer, with the greatest level of skill and knowledge, and may as a result be negatively impacted for months - or even years - to come.
So, you may ask, how do you reward your top employees without the effects I've noted above? If I knew the answer, I'd probably be wealthy now.
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