Their worry is that competition will be started by the people they've not hired and kept on the bench. I'd imagine a large amount of their top-level hiring is driven by taking minds off of the market, more than optimising their output.
How would person X discover this?
go out there, talk to people, find if it's really bullshit, and if it is, change it. there are so many interesting problems to fix that nobody should have time to do bullshit jobs