This is a pretty weird take. Talent in Denver, Minneapolis, Chicago etc. is not a whole lot cheaper than in the Bay Area. Employees are getting a large (majority) of their comp as options or RSUs, so that makes the delta even smaller, you're just talking base salary.

If that's "make or break" for you, then something is wrong. There are plenty of reasons to want to have a distributed workforce (larger talent pool in general, passionate employees) but saving money is the least important one here.