No offense to any and all programmers here who might be experiencing problems like this, but I don't see why the quote explicitly mentions programming. The excerpt seems to make just as much sense when we plug in another profession, say 'researcher' (I was going to say 'construction worker' but this profession is not usually associated with trying to signal intelligence, if you replace that word too then it works again). So are we solving a fully general problem about status in companies and the effect on your payroll here?
I am not sure about other professions. Maybe researchers also fit this pattern, but there are probably less researchers than programmers, so the typical person is this position would still be a programmer.
The pattern is approximately this:
The essence of the company is selling the things you do. Those are very complex things that other people in the company mostly don't even have a clue about. You create the magic, the rest of them provide you an infrastructure. (Which of course is important. Without selling to the customer, without doing the paperwork, etc...
Here is an interesting blog post about a guy who did a resume experiment between two positions which he argues are by experience identical, but occupy different "social status" positions in tech: A software engineer and a data manager.
The author concludes that positions that are labeled as code-monkey-like are low status, while positions that are labeled as managerial are high status. Even if they are "essentially" doing the same sort of work.
Not sure about this methodology, but it's food for thought.