Sure. It's an incentives problem. It's very difficult to align the incentives in any organizations with six levels of reporting chain so that people with the most day-to-day power over the direction of the firm (mid-level directors) are marching in the right direction.

I don't have a silver bullet for this, but I would say that, broadly speaking, managers that don't take feedback from below, as well as above, are probably doing a poor job.