Earlier quoted context omitted.
This sounds like the typical corporate line explaining why someone hasn't gotten a promotion: "A promotion for a knowledge worker role is typically a recognition of already having been operating at a higher level than the employee is currently mapped to."
Why would you need to explain why someones hasn't got a promotion? As an employee, you can expect a raise, sometimes, or a golden watch, maybe, after x years of service. But there is no reason to promote someone just for doing his job, no matter how good or how long he has been doing it. On the contrary, it would be dumb to do so. edit: typos
Presumably because they asked you why they haven't gotten a promotion.