So is most companies' unwillingness to allow full-time remote work. If it is possible to alter the mindset about the latter, it should certainly be so about the former.
Hey, I am with you. We (my company) are a remote first company that trends to merit based pay with minor COL adjustments at most. We have bands for each role and generally stick with them. Still, the idea isn’t bad. You want people to afford a certain quality of life and operate the business effectively. If everyone is happy with the arrangement the business and its employees win. If the business is doing it for a profit motive it shows up in employee satisfaction.