Yes! We have multiple frameworks that have evolved over time. Broadly speaking, we aim for internal consistency and consistency against what the market pays.
(Tom & I spent a good 45mins talking through all of this and doing a Q&A at our all-company meeting last week so this is a very very short and high-level version of how we do it)
We look at the role the person will be doing - how much skill/experience is required, how much ownership and impact they’ll have, and what level of seniority it is. We calibrate against external salaries (how much they’d get paid someone else) and internal salaries (how much people in equivalent roles here get paid). And then we make a reasonable, sensible, well-informed judgement call.
In practice this means that, internally, two people doing the same role get paid the same amount. Experience factors in a bit, but is not the main decider. Often you see requirements like “five years experience” on a job ad and that’s quite a lazy proxy for a heap of other things (e.g. if I spend a year solving a problem, then spend the next four years solving the same problem, is that the same as spending five years solving different problems?)