When I began my career I believed it would be easier to stand out and excel at a company where the bar was lower: where people were not very talented. I’ve found the opposite to be true. I think that being at a company where the leadership is talented makes it much easier to stand out and advance.
The reason for this, I think, is that people who are talented in a certain area are able to recognize others’ talent in that area, whereas people who are not very strong don’t recognize talent as easily, it is out of their sphere. For example, if I became a conductor of a symphony, I would have a hard time accurately promoting the best violin player, because I don’t really know anything about violin.
Talented people may also be less likely to be threatened by other people who are good at what they do.
The adage “A players hire A players, B players hire C players” holds true, and you could replace “hire” with “promote.”
It’s also just a lot more fun to work with people who are as talented as you are, and you learn much more from them. So I think it makes sense to aim high when you’re picking the people you’ll work with.