The common thinking is that it will reduce pay, but it may not be as much as most people think. A good example of this is Facebook's new compensation structure for remote work. For engineers remotely working from low cost of living areas base salaries are only 10-15% lower than in the Bay Area, and stock compensation is the same. So a senior engineer (E5) might go from making $400k to $370k in total compensation, while also substantially saving on California's income taxes.