Oh everyone is aware of it. They have been making some changes to the promotion process to try to address it. But it's still a huge issue.

I'm not so sure about what the alternative is, though. The promotion process at other places I've worked was pretty much "does your boss like you? If so, they'll promote you." Which has a whole host of other issues. For instance you can get promoted for doing a mediocre job at maintenance work but being very friendly and likable.