What is the fairest way to pay remote (work from home) workers?

Facebook announced in May that up to half of its workforce is likely to be working from home within the next five to 10 years. There is one caveat: staff salaries could be adjusted to align with the cost of living in their chosen location, meaning potential pay cuts for those considering moving away from its expensive Palo Alto base and other global hubs. Is this fair? I think about the pros and cons of paying remote (work from home) workers and come up with a compromise that is fair for workers and companies alike. Listen in and let me know if my idea has merit or if I am way off the mark. 

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