Should remote workers' salaries differ based on their location?

Earlier this year, Facebook (FB) made two major announcements. The first was that the social media giant would permanently embrace remote hiring, with around half of its workforce expected to work remotely over the next five to 10 years. Secondly, how much it will pay its remote workers depends on where they are located. “Our policy here has been for years — is already — that [compensation] varies by location,” Mark Zuckerberg said. “We pay a market rate, and that varies by location. We're going to continue that principle here.” Senior employees or those with strong performance reviews will be able to request remote work and relocate away from Facebook’s Silicon Valley base. In other words, they will be able to move from the hyper-expensive Bay Area to the Midwest — but it will come with a pay cut.