People with skill below 0.25 cannot meet the minimum requirements for the job, or cannot be productive enough to cover their labor costs. People with skill above 2.5 have likely been promoted beyond the parameters of that job.
Whenever someone exceeds base expectations to such an extent that they hit the ceiling for the position they are in, they either get recognized and promoted, they job-hop to the next rung up the ladder, or they throttle back their own performance to be proportional to their compensation.
There are a few jobs that are at the top of their respective career ladders, where there is no choice but to offer profit-sharing as a means of encouraging best performance. So you can get a 20x CEO, or a 50x celebrity performer, because they get paid a percentage, and there is nothing else to be promoted to, except young passive-investor retiree.
Whenever someone exceeds base expectations to such an extent that they hit the ceiling for the position they are in, they either get recognized and promoted, they job-hop to the next rung up the ladder, or they throttle back their own performance to be proportional to their compensation.
There are a few jobs that are at the top of their respective career ladders, where there is no choice but to offer profit-sharing as a means of encouraging best performance. So you can get a 20x CEO, or a 50x celebrity performer, because they get paid a percentage, and there is nothing else to be promoted to, except young passive-investor retiree.