The problem with zero sum game performance reviews is that they're not about improving performance but about fitting everyone in the same boxes. And this usually results in ridiculous outcomes, some of which are particularly bad depending on how that "box fitting" is implemented.
> trade a HV3 down to an HV2 in order to keep an unpopular but otherwise fine performing engineer from getting an LE.
Like this where the company's goal is never to improve "unpopular but otherwise fine performing engineer" but rather to keep the boundary of the boxes. And this despite mounting evidence against such systems, and the known abuse with methods like hire to fire. To me this is always a sign of rotten leadership.