This is not true. I don't choose the budget, why do I care what my guys are paid? I want my employees paid as much as I can get them because it changes nothing for me personally. The only reason I would want to ever give someone less then the max I can get them is because people are happier if they are constantly upgrading. Meaning I want to keep giving them raises in a steady pattern. If I give them everything I can right away and they miss a raise the following year because I already peeked them out; yes, they would be net positive in the long run, but their happiness would be lower.

As an employee, the best way to keep your salary up is to keep re-evaluating yourself with the market. I actually tell my guys they should interview at other places at least once a year. It lets them know that we are still a good (or not) place to work and it also gets them back in line with market salary if they slipped a bit. No one is going to make sure your pay is on track for you, you need to do it yourself.