Salaries are mostly driven by how hard it is to find an employee, not the value they produce. If the model is to hire someone to be in the office, you obviously need to pay based on your location and local cost of living to be attractive. Completely logical to pay $300k in SF and $90k in Tulsa.

Now, if you really go all in with distributed workforce, the problem becomes "why pay $300k for the guy in SF while I can hire the 'same' guy in Tulsa for $90k?"

Instead of the guy in Tulsa being upset that they're not being paid as much as their buddy in SF, it's the one in SF who should wonder if they'll be able to keep their salary at $300k for long.