I think this "hierarchical executive brackets" has been a force to determine executive pay in too many public and private enterprises.
The people with "careers" go along with it, because they understand how the system will work for them--and support that system.
The workers do not get the benefits for when an enterprise becomes "successful." THis is not right.
For your water districts, I might have a solution. I have invented a new way of commerce, called the "spolu."
In the spolu, the rate-payers become both "investors" and "customers." They will have substantial influence on the "senior management team" and can dismantle arcane executive remuneration packages, including overly generous layoff packages.