On the other side: the business can clearly afford it, so the value he brings is entirely justified from a commercial perspective. The fact that they can find cheaper alternatives on the IT market is a different issue.
You can buy a new branded car for $$$ and be sure it will work for years with minimal maintenance, or you can shop around and buy a passable 15-year-old car; in both cases it will likely get you from A to B for a while, but the chance of having problems is lower with the new "whip". This guy, to the business, is the equivalent of leasing a new car every year: they can afford it and brings no risk as far as they can see.
The obsession with capital efficiency can often turn into a disease. Why should we drive down our own wages, when the market is willing to pay more?
You can buy a new branded car for $$$ and be sure it will work for years with minimal maintenance, or you can shop around and buy a passable 15-year-old car; in both cases it will likely get you from A to B for a while, but the chance of having problems is lower with the new "whip". This guy, to the business, is the equivalent of leasing a new car every year: they can afford it and brings no risk as far as they can see.
The obsession with capital efficiency can often turn into a disease. Why should we drive down our own wages, when the market is willing to pay more?