I suppose the short-term gain is that you get someone who can "hit the ground running." But I suspect that there's a moderate or long-term loss when people get bored and move on. There's probably also a hidden cost of reduced enthusiasm for work.
Given the current corporate culture at the most senior management levels, who cares about the long term? The days of running a company for 30 years and handing it down to family are over. Today it's all about inflating stock values through any methods necessary, then cashing out options before the inevitable fall. Why work for 30 years when you can get the same amount in 5?
