This isn't right: Google and similar companies pay based on the local market and not cost of living.
London is a great example: high cost of living, low market rates for top talent, low pay from the FAANGs.
Pittsburgh is an example in the other direction: low cost of living, relatively high market rates, relatively high pay from the FAANGs. Still lower than the Bay though.
They're related, but we can pull them apart by looking at examples like the ones I gave where cost of living is high but the market rate is not, and the reverse.
London is a great example: high cost of living, low market rates for top talent, low pay from the FAANGs.
Pittsburgh is an example in the other direction: low cost of living, relatively high market rates, relatively high pay from the FAANGs. Still lower than the Bay though.