They basically have to give out generous equity to compete, but they and the VCs would rather be greedy and dole out fractions of percents under the cynical misleading pitch that these scraps will be worth millions when the startup exits for billions.
To their credit, This scam did work for a while, shortly after a whole lot of early employees really did make millions on generous equity grants at early startups like Google.
Being an "early employee" means nothing now. You get the token 0.01% bottom-preference shares that will net you 0 in almost every imaginable scenario, and somehow this is supposed to cover the 200-300k/yr difference you'd get at a profitable established company.
http://www.h1bdata.info/index.php?em=&job=Senior+Software+En...
Try:
http://www.h1bdata.info/index.php?em=Google&job=Staff+Softwa...
And keep in mind that base salary (what's reported on that page) is usually about half of total compensation. (Bonus and stock being the other half.)
Also this appears to be the H1B database. I'm not sure how H1B salaries compare to the overall average.
H1B salaries are typically lower than average. Why do you think companies spend millions lobbying for more H1Bs? To pay them more than average? :-)
Also, keep in mind Google only has to disclose base salaries for these H1Bs. For a staff engineer, most of the total comp would be in bonus pay and especially RSUs. They can easily be making $400k or more through those means.
No, to get a bigger talent pool.
As I understand it, H1Bs aren't too bad (transferability is a thing here), but other forms of visas are brutal in this regard.