No, not really. Here are some example counterpoints:
- There is a commitment to hierarchy. This is incompatible with meritocracy. The fact is, there won't always be one "smartest" person at each company. Yet companies always find a way to make a pretty reporting tree.
- It's not about trust, mid-level-managers care more about their promotions not reflecting poorly on them politically than the best interest of the company in the long-term.
- Most companies will codify a standard "promotion process" with peer reviews and 2 "cycles" a year. If this is about ROI then Joe the freshman can be CTO if he's that good (and heck, he may be, if he's the next Larry Page), no matter what he rates on the 4 dimensions of reviews.
- Most companies adamantly follow standard norms. For example they do not demote people (i.e. with pay cut). A meritocracy (or a truly ROI based system) would demote people.
- Most companies base their pay on previous compensation, rather than expected worth.