If your employees
are managers, then it's (sometimes) okay to have no domain experience in whatever it is your company does, because the people you're managing aren't doing that thing. You only have to understand how
those people think, and those people think—at least part of the time—like managers.
The job of the team leads—those managers whose only subordinates are domain-worker leaf-nodes—to act as a translation layer between your thought process and their subordinate domain-workers' thought process. They need the experience. (And they're the only "managers" that most people on HN seem to think have any value, given HN's love of flat org-charts like those of Valve and old-Google.)
But to be clear, while "EQ is a thing", for team leads, it's not enough. And in certain sectors (mostly industries where people are promoted into management roles by seniority), that continues to apply all the way up the org-chart, since in those organizations, the middle-managements will be ex-workers and will share the workers' views. So you, as a CEO, can't can't make any top-down decrees that conflict with those views.
For an example: any manager in a hospital, all the way up to the CEO, cannot get away with walking in off a stint at an F500 with no previous hospital experience, and succeed solely because they have high EQ. They need to also understand—deeply and intuitively—that their whole organization is run by people who think saving people's lives is more important than making a profit, and that any changes intended to increase profit at the expense of lives-saved-per-day will either be left unimplemented by the people on the ground, fought, or result in low morale and staff leaving. (Usually all three!)