I hadn't really a good handle on how politics play out high up the food chain but I do now:
Excerpt:
How to Minimize Politics in Your Company
In all my years in business, I have yet to hear someone say: “I love corporate politics.” On the other hand, I meet plenty of people who complain bitterly about corporate politics—sometimes even in the companies they run. So, if nobody loves politics, why all the politics?
Political behavior almost always starts with the CEO. Now you may be thinking: “I hate politics, I’m not political, but my organization is very political. I clearly didn’t cause this.” Sadly, you needn’t be political to create extreme political behavior in your organization. In fact, it’s often the least political CEOs who run the most ferociously political organizations. Apolitical CEOs frequently accidentally encourage intense political behavior.
What do I mean by politics? I mean people advancing their careers or agendas by means other than merit and contribution. There may be other types of politics, but politics of this form seem to be the ones that really bother people.
How it happens
A CEO creates politics by encouraging and sometimes incenting political behavior—often accidentally. For a very simple example, let’s consider executive compensation....

Thanks for the pointer to this blog
Lots of insight here. Is it just me or is the material in this blog highly aligned to MT?