Really comes down to what matters more to him, money or peace of mind. Some people like being in charge, while others just want to do their job without the stress of managing people. If he can afford the pay cut and would be happier, it might be worth it. But if he cares about career growth, stepping down could make things harder later.

I know people who took less money for less stress, and they were glad they did. Others regretted it because they felt stuck. Maybe he could try to negotiate for something in between, like a senior role without having to manage people.