Chamath talked about manager bloat on a recent All-in podcast in a way that seemed to make sense. Basically there is pressure to grow your career by moving from being an IC to a manager and once a manager there are incentives to grow your number of reports. The organizational efficiency suffers when you have top tier ICs start managing teams of average people. You might get a team of 6 engineers that’s only doing 2x…
If the reward for competence is promotion, in the steady-state equilibrium everybody's incompetent at their current job: If they were competent, they would have been promoted into a different job. It's called the Peter Principle [1] and it's pretty well-known. I suppose Facebook's realized it's in a Peter Principle situation, and the remedy for it would, in theory, be to send some of the people back to previous jobs…
You are supposed to retire or give way to top performers to take the top places.