Would you be upset by a decision that occurred at your job, where a senior level executive position was given to a person who did not meet the minimum educational preparation requirements and whose direct reports were required to hold advanced degrees?

Most would be offended to have to meet the minimum requirements for positions, but that the senior level executive does not.

My question is that if there are internal candidates that qualify for the minimum requirements, can a position be filled by a person who does not meet the required educational preparation?
How can someone with a bachelor degree evaluate reports that have a masters?

I agree that on the surface it sounds sketchy. How indeed can one be the boss when all the direct reports are far more educated than the boss is? But, you're confusing two issues: Doing and managing. In this person's case, they did neither very well!

What is the message the organization is sending. Want the American dream? Don't go to college!

Why are there so many places, including institutions of higher learning, which try to give a high brow illusions of grandeur, then fill high level positions with friends and unqualified wealthy individuals?

Do you know of any? Does it worry you?