Remember, the top 1% of households have $12M+ in assets. That's over a million households for whom work is somewhat or completely optional for them and their children. They can live a good quality life off capital returns without any hardship.
This logic still holds down the wealth gradient. Households at the 95th percentile still have to work, but the need is more flexible. The buffer of need could be years long.
So you have millions of people who genuinely don't need to worry about getting paid that much.