Yes, the company I'm at now has the 'unlimited time off' policy. Which has been shown to reduce the amount of time off people actually take, and means they don't have to pay out vacation when you leave. And that's on top of the perception that they're being kind to their employees. A triple win for the company.
But that's exactly why I want my 80% time to be officially recognized. I don't want to feel guilty or worry that I haven't justified my existence when I'm not there on Fridays. The contractual 3-day weekend means a lot more to me than an extra 20% salary with strings attached.
Put market rates down in that field, and then when they reach a hiring decision, say "By the way, because of tax rates in my country, I'd like it if you could make my salary no more than $55K and donate the rest to these charities." I don't know any business that wouldn't be glad to find out, on hiring decision, that their new employee will cost them half as much as they bargained for and they can take a tax write-off on the rest.