Not unusual for people at the top of their game. I just turned down a 2M a year offer, and I have a friend who is making 2.9M USD. It's just a value proposition, he makes the company a lot more than 2.9 million a year, and when you negotiate you negotiate on value (and not on time) then you can justify these salaries.
Fake it till you make it dude
Companies will:
1) Advertise lower salaries than you're able to otherwise negotiate (if you're a high performer) because they have to advertise this to everyone. People who could've earned more will lose some potential earning due to this measure, or they will not apply to suitable jobs for them that might have paid more on negotiation, and/or
2) Jobs will go unfilled for longer, and people who could've been hired for less will go unemployed or unhired for longer, because companies advertising a job with high salary will have to wait longer until the right person comes along for exactly that salary.
On the other hand, I could also see this becoming to the companies' advantage, as now they're able to openly collude and set standard (lower) wages for certain jobs, that no applicant will be able to negotiate above.
All to say, this is not the slam-dunk policy that you (or those policymakers) think. Lots of unintended consequences that I don't think that they even know yet.
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And I'm being downvoted for, what, stating reasonable opinions that don't make people feel good?
So if you are overqualified and confident in yourself, apply and negotiate.
> because companies advertising a job with high salary will have to wait longer
I think you have this backwards
> now they're able to openly collude
That's not a very stable equilibrium. I think they would instead openly compete