My company historically has had leveling issues and, sadly, they were definitely not meeting expectations for their level, or maybe even for the one below their level.
One was nudged out to another team. One currently on my direct team is being nudged out. One or two people want him to be fired (very curmudgeonly engineers who had worked with him), but me and the manager would rather find him new work within the company suited to his background in data science rather than software engineering. He's been dragging his feet; it's getting more and more difficult.
The company has a strong and vocal DEIB/social justice culture within certain parts of the company (though I suspect much less so among executives). It sometimes comes into play pretty directly in hiring. I've been in panels where someone calls out that the candidate is part of a disadvantaged population who've historically been under-leveled, though I haven't been in a panel where that made a difference in hiring or leveling.
The standard line is that the company doesn't compromise its hiring standards for diversity. I clearly have my doubts about whether that ends up happening in practice.