The problem with a lot of leaders is that after they achieve some initial (and maybe even really big and sustained) success, they start to see it as validation of stupid ideas they may have on other things that are not related. And they begin to view their companies as experimental labs for their personal unvetted ideas. This is dangerous.
You saw it in Google's daycare fiasco where some progressive schooling agenda was rolled out, leaving lots of parents with no affordable option for their kids because an executive wanted this, and everyone else had to follow. There are other (better) examples too.
I get the sense that this is the same kind of thing in action. A CEO has some utopian dream about a fully collaborative workplace where everyone is equal, meritocratic, and maybe actually some noble goal of making a better company.
But the thing you learn about groups of people over time is that not everyone can or wants to be equal all the time, and have a content-based battle for leadership every day of their lives. Sometimes you just need a factory workplace to get stuff done, and you don't need everyone to be equal and coming up with ideas every day of their lives. People often want someone to be the leader, to take the responsibility, say what others need to do, and they do it. You evaluate how it went, and try another idea where someone else leads.
You can see examples of this in your own workplace, your friends, your family. You very rarely will see a successful or satisfying group structure where everyone has to debate every decision all the time and be thinking on their toes to do it. It's tiring, and sometimes very much the opposite of what you need to happen. Get a group of friends together where no one feels they can say what the evening's plan should be and I think you get the frustrating picture.
Go home, start making dinner, and debate and negotiate with your spouse and kids about every step of the process because it's sure to make it better, right? I suggest you try it in your life before rolling it out to 1000 employees as the company policy.