Actually hold interviews and not just offer positions.
Bright young minds, willingness to improve
Honesty, Integrity, Program Management, Organization
It is all about the leadership. The CEO needs to sell that company for what he can get from it, and let somebody else take advantage of the awesome engineers there.
The CEO needs to understand that his processes do not work, and they never will. He is effectively leading his employees off of a metaphorical cliff when it comes to future employment and reputation.