You are correct - to the company he's worth the amount it would take to replace him. Plenty of people can negotiate to get closer to that so negotiating a rais

You are correct - to the company he's worth the amount it would take to replace him. Plenty of people can negotiate to get closer to that so negotiating a raise isn't pointless - but lateral moves are often easier. Although you can be more valuable in a different company - for eg. if your current company isn't good at utilizing your specializations.