When word gets out that the guy got a raise or he shows up in a new car, you’ll have a line of people with hat in hand.
Comfort is valuable to people. About 30% of my people are making significantly less than their market value. Myself included. But, non-cash benefits are powerful as well.
It is worth calling out that compensation is more than just salary however. But if strong performers are consistently leaving your company due to compensation, then you're doing something wrong.
The former head of talent at Netflix wrote a great article on hiring and compensation that touches on these points: https://hbr.org/2018/01/how-to-hire
The bigger point in that article is that you need to look at people holistically.