This happens _constantly_. It is a side effect of how the promotion ladder in the management profession typically works at large companies: your likelihood of being promoted to the next grade depends entirely on a small number of metrics one of which is how many people you manage.
I actually have been documenting a very strong example of this for a book I have been thinking about writing about what destroyed a high flyer after the dotcom. After the collapse of the dotcom, one group, which had the CEO's ear as "the project that will save us" had effectively unlimited headcount even while the rest of the company was in cuts-and-freeze mode for 2+ years, and because of the headcount = promotion issue, they hired armies of people that they were barely even interviewing. The project ended up 2-4 years late depending on whether you count the first release as a viable product (it wasn't).
I have seen this behavior in every single large company I have worked for. I'm not going to give more details because it would ID me, but this is very common and I was in a position to witness it with actual data, not just a leaf node engineer telling myself stories about why XXX got a promotion to VP or whatever.