Ben Horowitz, the author of Hard Things About Hard Things explains the phenomenon that he calls The Law of Crappy People
The Law of Crappy People states:
"For any title level in a large organization, the talent on that level will eventually converge to the crappiest person with the title."
The rationale behind the law is that the other employees in the company with lower titles will naturally benchmark themselves against the crappiest person at the next level. For example, if Jasper is the worst Vice President in the company, then all of the Directors will benchmark themselves against Jasper and demand promotions as soon as they reach Jasper’s low level of competency.
After reading the the book I did an competency audit in my small business and found evidence of this law in action and damaging my business, If you are running a business I bet you will you too..