I agree with you that hiring that talent at that level of EBITDA will take a big chunk of your profits. But there are one of two types you'll hire. One is if y

I agree with you that hiring that talent at that level of EBITDA will take a big chunk of your profits. But there are one of two types you'll hire. One is if your business is not going to grow much (say, <9% a year). I'm not sure that requires a $200k person. Perhaps there are some low revenue, low growth businesses that do require someone that expensive. I'd be genuinely interested in examples, for a thought exercise if nothing else. The other is if your business will grow, and will experience the challenges associated with that. Maybe not insane growth, but perhaps 10-50% a year. Then you do need that more expensive person who has grown a company to be bigger then yours is today. If it is the latter case, then the percentage of profits you give to that person will decrease with time.