Downgraded while new recruit slips into my previous grade

[GINGER44]

Hi. I have been advised that I have been getting paid too much, compared to industry average, and so no annual rise will be awarded until things balance out. Furthermore, my role has been downgraded, probably causing the effect of overpayment. A year ago a much younger person, a friend of a company director, was brought into my team on same level as me and given a junior member reporting into him. His grade has remained the same. I can't articulate what I feel has perhaps gone on here, but I do feel unfairly treated.