It's interesting. Many large companies routinely fire the bottom 10% of their employees every year. I wonder if they would perform better if they routinely fired the top 10% of their employees (by org chart, not by performance ratings) and let talented new blood bubble upward. The Peter Principle says that people rise to the level of their incompetence, and in general new employees enter at the bottom of the organization, so logically you would have more incompetent people at the top than at the bottom.
There're a bunch of organizational anti-patterns that could be avoided with this scheme, too. Empire building would be disincentivized because it'd always become someone else's empire after a short period of time, and organizational politics is reduced as the players keep leaving, and you'd have to think in terms of building institutional knowledge from the beginning of your tenure unless you want everything you've accomplished to be undone by the next guy.
There're a bunch of organizational anti-patterns that could be avoided with this scheme, too. Empire building would be disincentivized because it'd always become someone else's empire after a short period of time, and organizational politics is reduced as the players keep leaving, and you'd have to think in terms of building institutional knowledge from the beginning of your tenure unless you want everything you've accomplished to be undone by the next guy.