This is fairly standard in the science industry (I use the term deliberately). I get rated (in nuclear and particle physics) on how many papers I've published, what indictions of recognition I get from my peers and at which conferences I've been invited to speak. Short of something like a Millennium Prize or a Nobel (one-in-a-million, and both still very political), there are almost no direct rewards to accuracy or importance.

Academics tend not to be the people with the most understanding or the best direct insight - they're the people with the most friends on committees and who do the most fashionable things (usually badly). And so they appoint new academics who are a little bit worse than them (no point in opening yourself to competition - instead bring in people who are going to be grateful to you!) and the cycle continues.