Almost agree. I would say that if this is the case, Pay is local optimisation.

On the long run, if you stay in such a company your market value will by reduced as it is

(a) psychological very difficult to resist such culture to influence your mind, unlimitedly transforming you.

(b) will eventually turn your life into a saga of bitterness and resentment, lower self esteem.

(c) arguably, such a company will ultimately fail in their business.

so you're probably better off take a possible temporary pay reduction for a better happiness and higher pay on the long run.