Paying for software developers is really weird. State governments for example struggle to pay for a FTE that makes $140k. But they can pay me over $200/hour for consulting services for multiple years. The technical FTE employees that they have generally aren't qualified to evaluate their consulting needs so you get multi-million dollar contracts with very little actual oversight. I was really impressed with the folks I was working with at this particular state government and looked into what it would look like if I joined them full time as a FTE technology leader. I would have to take almost a 50% pay cut. The top senior IT position that oversees all of the state resources makes 70% of what I do. It's crazy. Unless you're working in medicine or sports, government pay sucks.

I've seen similar but less extreme examples play out in the private sector. 16 year senior architect making less than freshly hired software dev that was just an intern within the same company. Software developer pay is largely based on what you're demanding. In a lot of companies, there is a wide range of pay for folks doing literally the same job. They will hire a dev at $180k because that dev wouldn't go lower and turn around and push back to get another dev at $120k for the same level of unproven experience.

I assumed the commonly cited 2x markup, so that would be a $100k salary, which is less than various websites say is the average US software dev salary. You could probably find cheaper elsewhere in the world, but even if you cut the salary in half that's still "bug must be doable in a week", which isn't going to cover many of the bugs people will care about.

I believe that the $200k figure was meant to express what such a person might cost the company, not what that person would be paid as salary.

(And it's just a placeholder. $200k seems like it's at least in the direction of the right ballpark.)