This is the classic answer to these problems, but I think these "non-profits" and "civil managements" are inherently problematic.

Let's say that John Doe is a very accomplished visionary individual, and has quite a few revolutionary good ideas around improving the water system. Obviously Mr. Doe needed lots of lab equipment to gain experience and insight into these systems, and realistically needs a lot more if he wants to live to his full potential and benefit the public. He is determined to work towards the greater good, but also needs a lot more power [than the average citizen] to test his ideas.

Therefore in order to [be able to] accept this role, he has to be well-compensated (as a one in the world person). Therefore the payment package must look a lot more like the CEO compensation or a high-end management position, which is contrary to the idea of civil management.

Said differently, money can be a good proxy of the power to bring about changes, and if we truly want to try radical ideas (as we should in challenging problems), we need powerful individuals that can risk [their own fortune of course], not committees of less powerful people best suited for maintaining the status quo. In other words, the average citizen is much too risk averse to accept (or approve the payment package of) John in this position, and this can lead to stagnation.

I believe a better way to manage these systems that simultaneously protects the public from adverse incentives and allows high risk high reward behaviour is a middle ground. For example a risk averse non-profit for day to day operations + prize systems + modest (not too big) government-run research facilities.

Fundamentally speaking, there is always a risk / reward tradeoff, and I believe the current society is too conservative and is missing out a lot of opportunities (compared to let's say the cold war or WW2 era). We need to somehow rebalance this scale to live near a better operating point.

> but I think these "non-profits" and "civil managements" are inherently problematic.

I'm not talking about "non-profits" or NGOs. I'm talking about legislating autonomous organizations within ministries with full autonomy and remit to execute on their jobs and only report directly to the Minister or the Permanent Secretary.

This is what Singapore does, which itself is based on the British colonial model.

At some point, too much democracy is delerious, and Tom, Dick, and Harry need to know their place. Not everything needs to be politicized and democratized.

> Therefore the payment package must look a lot more like the CEO compensation or a high-end management position, which is contrary to the idea of civil management

What country are you from? Even the UK has begun developing statutory boards like the FCA and SFO that pay market rate salaries for critical roles.

And until the Thatcher era, civil service pay was comparable or slightly better paid compared to other white collar roles.