Our engineers are fucking morons. And this guy was the dumbest of the bunch. If you think Netflix hires top tier talent, you don't know Netflix.
If your "dumbest engineer" got a job and a hefty raise going to Netflix, it means he was very capable engineer who was playing the part of moron at this Fortune 500 company because he was reporting to a manager who was calling him and the entire team morons and he didn't feel the need to go above and beyond for that manager.
Also, highly likely that it was the manager that was the moron and not everyone around him.
It's also possible that there's very little correlation between capability, reputation and salary.
Don't we all know someone who is overpaid? There are more than a few well known cases of particular employers who select for overpaid employees...