Well you have to also consider the Seattle location. State Taxes are %10 less than California and the cost of living is lower, so the compensation is lower than the SF Bay Area as a result.
While true, the start up was also in Seattle. I haven't found the compensation to be lower to be honest. It's part of the reason I've been staying here even though I like California more. It's way easier to save here
Not to mention you can actually afford a mortgage there.