The CEO in this example is an idiot, but it does not mean that magically the other side is able to be impartial when judging the situation.
The fact that one is bad at their job does not imply that someone else is good at their job. Why is it hard to accept that maybe being in a dev team doesn't mean you're good at your job?
Why is it hard to accept that maybe being a CEO doesn't mean you're good at your job?