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Our company does use salary bands based on region within the US (for example, northeast US has higher ranges than the southeast.) We also use country specific salary ranges. I think that’s a pretty common practice for large organizations and any international organization. As a hiring manager, you have to weigh where the talent can be found for your specific roles.
I think it's bullshit. I'm selling my time and skills. They're not worth more or less depending on my physical location