Anyone who has any real world experience knows that management by committee just doesn't work.
I don't think management by committee is what they're expecting.
If you have a reasonably healthy team, someone will step up and act as an unofficial lead without too much fuss. The trick is they will not get paid to do this extra responsibility. Smart cost-cutting trick, right?
Well...if these unofficial leads are career savvy they'll leave in the usual 2-3 year time window. Which is exactly why managers are paid generously in the first place, so they're not as likely to run off to the next opportunity and turn the team into a chicken with its head cut off.
This is the kind of short-term stock-hiking brilliance C-level PHB's are paid the big bucks for