If I sat at the foot of some exalted spiritual man for long enough seeking meaning, I too would probably start finding meaning in his every act. It's a completely self-fulfilling prophecy.
That's great that the author learned a life lesson by being summarily embarrassed in a room of his peers. But realize that is totally a function of how he chose to process it, and not of some great teaching technique of the CEO.
Perhaps the CEO recognized that this would work in this case. For another person, perhaps another technique would have been tried. Regarding the story here, this last paragraph is all speculation, of course. We don't know how the CEO would've handled a different person. I'm really just addressing your point about teaching technique.
I'm unconvinced that this actually happens, so I, at least, would expect that it's very, very rare to use verbal or physical abuse in a way that produces enlightenment of any sort. Discipline, I would understand. Enlightenment or understanding? Doubtful.
They never abused me, but as a hotshot 17 year old, was humbling to have my ass handed to me by an overweight, half blind 50 year old man.