The government should charge $125k/year, or some other number, for each one. The company gets to take the salary off of that. That said, the ramp up to y2k allowed IT salaries to also become unrealistic for what most of the industry does and is qualified to do. It does need to adjust.
They got paid while they were working. Look at the app, they were all guilty of trying to milk the system for cash for something that isn't worth the money. Some people are born rich and will always have money, some aren't. That's life.