Many years ago, I realized that the larger and more layered a hierarchy is, the more insane it is. As TFA and most posts have pointed out, the board does not do what a board should do. The President/CEO is generally (generalizing, here) outward-facing, mostly concerned with how the organization is perceived. Vice-Presidents are... well, vice-presidents - some are good but many are either competing to be the next President or are too scared to do anything that they are not already doing. Middle management are often simply paper shufflers, maybe trying to do a good job but not important enough to really change anything. Lower managers can actually see what is happening in the company, but their view is so at odds with the view of upper management that they are powerless.
In short, those on top don't know what is happening, those close to the action are ignored by those at the top, at best, or act only out of fear or ambition, at worst.
Interesting story: I was a "super-consultant" (read: contractor) at a large, old tech company in Texas back in the '90s, working as part of a team to install a major system. I was working on some bit of code, realized that the approach I was taking was not going to work, and said something like "This is never going to work!". Seconds later, just as I was starting a different approach, the girl in the next cubicle - an employee and my main contact - called me into her cubicle and... said basically that she could not believe this, that my behavior was totally unacceptable... Her reaction would have been appropriate if I had stood on my desk and yelled "This stupid project is never going to work and this stupid company should never have started it".
Short version: expressing any doubt about anything in the company, even the bit of code I had been working on for ten minutes, was totally forbidden.
The message seemed to be "You are happy about everything that happens in this company or you are fired."