The degree of job security for tenured faculty is higher relative to other kinds of jobs, but whether it is excessive is a different question.
The tenure system provides higher job security than a for-profit company would, but the monetary compensation is lower.
The correct view of the tenure contract is that universities get high-priced talent at a low monetary cost; they pay instead by providing job security.
While tenure provides job security, it doesn't guarantees a lifetime increase in salaries.
The disincentive of tenure system:
Untenured faculty view tenure as a incentive to work hard, but the desire to earn tenure also makes them cautious during the pre-tenured years. Many of them fear that unconventional teaching would impair their chance to get the tenure and thus they conform to conventional teaching and research topics that would pay off in a shorter time period. But when they take such mainstream teaching styles and research methods, the cost of innovative research and teaching at post-tenure career would be huge because they have locked in and failed to adopt more daring ways.
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