> With that in mind, does it become harder to attract great executives
A good analogy would be attracting candidates for coaching positions in sports.
If you're a team in a bad situation, you'll have to settle for candidates that don't have the experience usually required for the position, or people who've done it before who haven't had huge success.
Also most great execs are already in a great position - why would they step into a bad situation unless you gave them a higher title or more power?
Basically you get either a placeholder or an unknown quantity. The unknown quantity is just that. They might be awesome (everybody has to have had a first head coaching job) or completely overwhelmed.