Earlier quoted context omitted.
Yeah, I see this all the time too, they offer 50-60% of market rate and wonder why they get no takers.
I imagine the people that would accept that are 'lifers'. Where they get comfy, rationalize that they know their job, and the company never has to spend more than 98k on this person for the next 35 years. Weirdly enough, it seems like Fortune 500 pays best for the brightest and they have them working on high level concepts and paying suppliers to perform the nitty gritty engineering. I don't quite understand the rati…
Executives like to work with people that they "like", so its frequently people who went to similar schools, have a similar sense of humor, don't say stupid shit etc. Even if these people are totally ineffective and have no skills, they will keep getting hired. Then, they make use of the new labor markets, where you can just outsource everything and hire consultants/contractors to do the actual implementation.
If the project succeeds, the hired person is a star and gets showered with money, poached by other firms where they try to replicate a similar, completely short sighted way of building business value.
If the project fail, blame the contractors get new ones.