Not necessarily. Sounds like Ben was doing 1:1s with Steve and Steve wasn't aware of the problem. If Ben never thought to ask Steve it wouldn't have come up. As CEO (with 100s of things to think about) its entirely understandable that Ben forgot to ask Steve whether his managers were having 1:1s for 6 months.
I believe by 'next lower tier' he was talking about Steve's reports. Realistically the CEO can't meet with everyone in the entire company constantly, but it is a very good idea to have occasional 'skip-level' meetings with your direct report's direct reports (and in a reasonably hierarchical company the number of direct reports to a VP is likely small enough that Ben could do this once and awhile). If not you risk forming a view of the world that is fed entirely by your direct reports, who are more than likely telling you what they think you want to hear, which may or may not correspond with reality as seen at the lower levels of the orginization. It seems nowhere in Ben's 1:1's with Steve did he ever inquire about Steve's 1:1's with his reports, or if he did Steve never bothered to do the same with his reports, otherwise this oversight would have likely surfaced far before 6 months of no 1:1's had passed.
