Because there really aren't that many of them, and even fewer who aren't also using local rates.
> Living in a cheap area comes with drawbacks.
I agree, I live in a cheaper COL location. But, I was already living here, so I'm not sure how my salary at GitLab affects that. Local companies don't pay you more because of the drawbacks of living in a cheaper location. If I moved to a higher COL location then I would be compensated for that [1]. The mechanics are the same, I just get to do my job from home.
> I’d care a lot if I made a lot less than a colleague for the same type of work at the same company
This is, I think, the most important factor. I didn't decline my offer at GitLab in favor of staying at my previous company because I knew my salary would be the same as every other employee. I compromised on that front so I could work remotely for a company that I really felt like was a better fit for me.
[1] https://about.gitlab.com/handbook/people-operations/global-c...
Furthermore, I’d care a lot if I made a lot less than a colleague for the same type of work at the same company.
Living in a cheap area comes with drawbacks. It might be a good choice for some, but a necessity for others (maybe they have relatives to take care of). I don’t really see how my choice of location should affect my payment in a remote company at all. But then, maybe a company like Gitlab wouldn’t be the right place for me, because I don’t share their salary philosophy.