Ask HN: Switching to Engineering Role=Compensation Reduction?

I am switching my role from a traveling consultant (Monday-Friday at a customer site) to a pure engineering role (work in the office). My employer, a multi-billion Silicone Valley-based software company insists that I take a (somewhat) significant (~10%) total compensation reduction by saying that they pay premium for traveling. I already negotiated this down to 10% reduction (initially it was more like 30%), and they say it is final. I didn't think it was the norm in the industry, but I wanted to validate this against a larger pool.

My likely choices are: 1. Take their offer and move on. 2. Take a stand with a potential of being forced to resign. 3. [Your suggestion]?

I am very stable financially, so leaving is not detrimental in the short term (6-12 months).

Have you been in this situation? How did you deal with it?