I am currently involved in salary negotiations with a re-hire who left from the department while under another manager. I was his co-worker at the time he left but I am now the hiring manager. The issue is that he wants the same $ as when he left but the position he left at was eliminated\scaled back. If he came back in at that $ he would be making significantly more that my highest paid direct and within a couple thousand dollars of my own $. Overall I feel that this person would be an asset to the team as he was before he left, but I am not comfortable with the $ being so close to me and deep down I feel that he was overpaid at the time anyway. On the other hand I feel that I'll loose the re-hire opportunity if I propose less than what he left at. What should I do?