Not a great example. They just pay low period. Their target is 50th percentile. That's hardly going to result in a big paycheck relative to most SF startups, let alone the big companies.
I know their pay isn't good but it is calculated based on where one lives and is similar to what the parent-post mentioned.
This was discussed fairly recently. There are some oddities to the calculator. For example, the entire state of Oregon and the entire state of Massachusetts are on a single pay schedule even though there are enormous CoL differences between the main urban areas and the rural areas of those states.