I guess we disagree on the purpose of grades. Speaking for experience at Wharton most people have the material mastered to a degree that they would be getting good grades at other universities. I know, a vast simplification, but kids here are smart.
My dad works in finance so yea I’ve spent a good amount of time around it. You are correct, people are promoted for a variety of reasons other than specific knowledge and it would be naive to think otherwise; however, my words were not meant to be taken that literally. The best analyst in the class is given great rewards and prestige even if the second analyst is just close behind. The PhD student with the most groundbreaking research is hired by the best universities. Yea more than just production for nearly all firms is used as a gauge for promotions, but what I am saying is that the best tend to do better off and the curve makes it easier for the cream of the class to rise to the top. If everyone was given a grade based on their mastery of the material then the average GPA would be like a 3.7 because most people here know what’s up. That would present a problem for recruiters who truly want the best of the class and would have a tough time differentiating the best students and the average students.
At Wharton your diploma says you’ve mastered the material and the GPA says where you stand in your class.