I agree and want to corroborate from another point of view, speaking as someone that's hired at and been a technical lead at multiple organizations: it's very hard to find actual talent, and paying a higher salary for one actually talented engineer is almost always a better investment than paying average salaries for, say, three average engineers (conservatively).

From that point of view, which I am convinced of, I not only see no problem with this - I see it as a good sign, and have more faith in the organization because of it.