"pair programming is an excellent way for both parties to get a sense of what it is like to work together." So true and if you can convince a developer to do this, power to you. We are an early stage startup and we are two for two with this method and have carved out a strong team.

I would argue that high salary requirements can be negotiated if you can frame a strong vision. Developers are not investment bankers and often are not doing this for the money alone. Often, good developers are looking for a place where their voice has as much weight as anyone else and where they can grow with company. We wouldn't have it any other way.