“But we have ping pong tables”

Why salary is an extrinsic factor? It is intrinsic factor to productivity (yes even the best one). I am not saying money is everything, but it is one of the factors that makes a developer feel whether he/she is respected enough in the company. In a lot of cases, if not treated in time, salary can become the sole reason for quitting the job.

A good developer should not have to worry about salary to do his/her job. Therefore, should not be cheated either (in terms of the input the developer gives to the company).

It may also detract from the work environment if the ping pong table is close enough to where people are working that the noise distracts them (or stray ping pong balls hit them in the back of the head). If your office is a single open space, you probably shouldn't have a ping pong table in it.

The best developers value being able to focus on their work and staying in a state of flow much more than they value ping pong or other recreational facilities.