"Third, salary, salary, salary, and benefits (particularly insurance and family coverage). Move 'em if you have to. We've even bought houses outright for our programming team members. You can't expect to hire a superstar by treating them like a drone."
You have to treat them right, but "throwing more money at them" is often not the answer. Truly creative brilliant people are motivated by very different things. For instance, one of the silly things that keeps me at my current job is a private office with a closing door and an opening window. Creature comforts, opportunities to socialize (or not socialize), free food that costs way less than the salary bump you're talking about, interesting decorations in the office are all wonderful and cheap motivations.
Another example: I will not accept a job offer from a company if I don't see Dilbert cartoons (or some moral equivalent) posted in personal areas, because that means they squelch dissent and Management is insecure. I can't work in an environment that I can't constructively criticize
See the book "1001 Ways to Reward Employees" by Bob Nelson.