My opinion is that the compensation burden on the state is regularly offset by the distribution of grant funds.
Top talent attracts research funding that the state can't otherwise provide and guarantees future generations of doctors and scientists are trained using the most advanced technique and technology.
Where was it suggested those salaries were typical?
I'm saying in those cases where you see a seven figure salary for a department chair or chief of surgery position at a teaching and research hospital, it's because the state believes they have the very best talent available.