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This doesn't surprise me.

One of my top dev team leads wanted to relocate from India to New York a few years back. I sponsored it and, along with a relo package, put him down for a salary around the median for his level in NY.

I got a call the next day from HR in India telling me that there was no way that they could sanction such a high salary. Their argument was that if people in India found out then all hell would break loose. The salary they suggested was actually lower than all the junior devs that would work for him.

I refused to accept any reduction and the relo went through on the original basis. But I do know that a number of similar appointments did go through well below market.



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