I don't know how Google is doing it, but the difference at some other companies is not that much. You're probably not getting sent down from 600k TC to 60k, even if that's the going rate for developers in Nowhere, Montana (if there even are any developer jobs there).
Then, consider that much of compensation at higher levels is RSUs you've already been allocated for the next four years anyways.
At these companies, "management is not a promotion"™, so it's not exactly that. But yeah, you usually have to deal with more people stuff, even as an IC.
I have seen this implication frequently in these discussions, that remote workers will get fewer promotions, lower ratings, etc.
The assumption is that this therefore makes remote work non-viable. I don't really get that. Trading off better compensation through promos and ratings is just a business decision for the potential remote worker.
Personally, I would trade never getting a promotion again for remote work. Google and the other companies like it already pay very, very well. If you've reached E6+, it's "FIRE in <10 years" well, even if you get "meets all" ratings forever. If you're in that position, you can be making 10x the median household income. You've basically won at money.
Commuting is miserable, and I bike, easily one of the two least miserable methods (walking being the other) of doing so. Open offices are miserable. Flexibility at home is amazing. Having my own space is amazing. Making my own food for lunch, in my kitchen, is great. Feeling unfocused and deciding to just take a nap in my own bed for an hour.
So yeah, maybe I'll never get a promotion. But, I don't think I'll do poorly enough to get fired, so... good enough for me.
Then, consider that much of compensation at higher levels is RSUs you've already been allocated for the next four years anyways.