Ok i get your position - it must be an old org, but not too big, then it's ok to collect personal information.
Rather odd, if you think the policy is reasonable, then why don't you support it?
If collecting paystub information is so reasonable, why are they the only org that does this?
References are reasonable.
That said, an org can make up any rules they want. So while I personally find their policy unreasonable, I do support their right to do whatever they want. If they want to chase away high-value clients who have a family or job that is too much risk to lose, that is their choice. An odd choice, though.