Unfortunately, as in every management theory, the answer to the title question is: that depends. It depends on the organisation. In mediocre organisations, which employs mostly mediocre people getting by through breathing and just being there, being good is a curse. It is so because such person will be stuck on her position until she leaves on her own. Her efficiency and proficiency at work will be exploited to maximum, because not many other workers will be able to handle the jobs she will take care of, seemingly effortlessly. She will be given more and more chores, until the frustration level will reach boiling point and then she will leave.
In good organisations, from the other end of the spectrum, it is not. Here such person will be given more and more responsibilities, but those will replace and grow from previous ones. Someone else will take care of the old stuff, being even trained by our good worker. The efficient and proficient one will grow until she will reach her limit. But then she will understand herself why she got stuck in certain position. Of course the end of the road can be in C-suite – and why not? Such organisations will never run out of good people, it will learn a lot and grow rapidly.
It is not possible that everyone who is good will reach the top of the organisation, there are simply not that many positions to go around. But that should not stop organisations in investing in good people helping them grow. Mediocrity is, unfortunately, still abundant everywhere. Should you be lucky enough to have good people around you, help them out, use them, challenge them, grow them. Or they will leave (sooner or later), or burn out. One day you will end up in a sea of nobodies dragging your organisation towards self-destruction.
“Sometimes I worry about being a success in a mediocre world.” – Lily Tomlin.
“All good is hard. All evil is easy. Dying, losing, cheating, and mediocrity is easy. Stay away from easy.” – Scott Alexander.