They would just leave and pursue one of the many open positions paying double that for fully remote work that also typically include RSU's, bonuses, or options.
I know project managers that make twice that in smaller cities, just because they're AI adjacent.
No. You're completely missing the point.
If they paid competitively then candidates would be competing against qualified engineers.
Regardless of qualification, it's a valuable position, because of the responsibility and capability of setting policy. You don't need any qualification for that. It probably helps not to have it. And that's value that can be turned into other forms of compensation, perhaps using fancy accounting.
Thats why I said "unless they're on the grift". "Grift" is slang that means something like scam or confidence game (the origin of the term 'con').