> What other kind of option is there?
Placing value based on the work assigned? Obviously insanely easier said than done. But I think we should embrace the fuzziness a bit. Your manager should have a very good idea of this. If they don't, then they're the ones that should be let go because this is a significant aspect of their job. (may be learned through indirect methods)
> That doesn’t seem a little insane to you?
Honestly, a lot of business practices and economics sounds insane to me. Similarly a lot of alternative suggestions (especially the latter) since they tend to not address the underlying issues but be bandaids. The ones that don't sound insane are often boring and very reasonable, but I think we've established that that's considered undesirable when you're evaluated by visibility. I think this is probably a significant part of the negative feedback loop.