C-suites have no grip on reality, because their subordinates are afraid of telling them truth. The subordinates just want to look better in the boss's eyes, and are afraid to be replaced.

The more levels the org chart has, the more pronounced the effect may be.

Understandable, who can afford to risk their livelihood just to tell a dumbass he's being a dumbass :p it's not like the C-suites will listen anyway