The total of base compensation and benefits are already more or less required by law to be 100% of the market rate, as justified by surveys in the private secto

The total of base compensation and benefits are already more or less required by law to be 100% of the market rate, as justified by surveys in the private sector. However, that does not include any stock compensation or bonuses. So government employees make about the same in industries that don't have significant stock or bonus. They make considerably less when more compensation is in those categories. So the situation is already what you describe, for the most part.