[gpuhacker]

From the wiki page:

"In 2018, professors Alan Benson, Danielle Li, and Kelly Shue analyzed sales workers' performance and promotion practices at 214 American businesses to test the veracity of the Peter principle. They found that these companies tended to promote employees to a management position based on their performance in their previous position, rather than based on managerial potential. Consistent with the Peter principle, the researchers found that high performing sales employees were likelier to be promoted, and that they were likelier to perform poorly as managers, leading to considerable costs to the businesses.[15][16][2]"

[kbolino]

The Peter Principle might be downstream of the Monotonic Pay Scale, where it is expected that a person who manages others must be paid more than any of them. Conversely, no matter how good you are or how much money you are making the business, you will reach a point where your pay is effectively capped unless you transition to management.

The government suffers from this especially, despite an ostensibly very different incentive structure. The explosion in government contractors (by which I mean, individuals indirectly employed to do jobs in lieu of direct hires) seems to be driven in no small part by this problem.