There is a difference between pay so poor no one is willing to take the job and pay good enough to get top talent. Clearing the first hurdle doesn't say anything about the second.
A weak CEO with strong people beneath him can still very much succeed, but the best CEO in the world won't help a company with otherwise sub-par employees.
And it's not just hiring: a company where people are not financially punished for sticking to what they are best at can have a huge advantage over a competitor ravaged by the Peter Principle because that's the only way to get a party of the pie.