I think the compensation should be gauged on where the company is located. If my office were in Silicon Valley, it shouldn't matter where I complete the work, it still ends up in the Silicon Valley office. Right now my wife is trying to get permission to stay remote permanently. Her immediate supervisor mentioned that his last company would base compensation on where you were located, and said that they might try to do that with her. I told her that if they try it, explain that we really enjoyed Maui and that she'd need a 40% raise.