I call BS. Employee compensation should be based on the value of the employee's work for the company. That needs to factor in all sorts of things, including whether they can attract the right talent for that amount. A line of code or a piece of writing or a design create the same value, whether they were coded/written/designed in San Francisco or Podunk.
And the whole why-does-she-make-more-than-I-do-when-we-live-on-the-same street is a false flag. The airlines sure don't worry about that kind of thinking when they charge different prices for the same flights.