The teachers are being paid by the hour, but it does not account for grading or anything done out of the class. This might be one of the reasons it is so expensive. If a teacher has one class that lasts 8 hours, and is paid 100$ /hr, he will end up with 800$, even if he has to spend 10 extra hours grading everyone.
My university was for profit, as I said it's a french based university. The director owns multiple Lamborghinis (not sure although if it is related to being for profit).
My family member was not sneaking peaks at salaries, she was the one hiring the teachers, signing contracts with the teachers, etc...