If these were elite software engineers and the compensation was $100,000 per year, then either (a) the auction did not work, or (b) that is a fair market value for engineers (which would mean that the auction worked, but the
raison d'etre for it is suspect).
Engineering comp. is a long discussion, but I don't think the best engineers are under-compensated so much as under-utilized. Companies pay appropriate to the work people are doing, but staff engineers 3-5 years below what they're usually capable of.
