You're parsing this wrong. Try "the 107k/year includes salary + the employer's cost to provide benefits to the employee". The benefits/fringe do sound excessive - most places they're more like 25-30% of the salary, here it looks to be more like 60%.
OK, maybe I did parse it wrong, now that I reread the original, I see it. But $170k is $170k, even if some of it is in benefits. That 25 to 30 percent for health/dental/retirement/whatever is money you'd be spending on those things anyway, and most likely a lot cheaper than you'd get on your own. So my statement sill stands on the economic situation, the rent gouging, and over inflated real estate going on there needs to be stopped.