It just happened at my company. He produced problems in his team (at least from what I have heard) and now produces problems/friction for whatever team must interface with him and depend on him. I don't think anybody thought he's competent. The role didn't exist before, though (Chief of Test or something) and doesn't have real leverage. So he's in the meetings saying stuff but my feeling is that people mostly work around him and he generally doesn't know the answer to questions that fall within the scope of his role.

I feel bad for him to be honest, would be a very tough spot/role to be in anyway and he seems not be able to enable himself being actually productive.