Seth_Goldin comments on High Status and Stupidity: Why? - Less Wrong
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I think the overjustification effect might be at play.
In this case, the reward is status. It's important to note that the person must anticipate the reward, though. People might explicitly seek status, but subconsciously seeking status might provide enough anticipation to create the effect.
I am taking Eliezer's definition of "stupidity" to mean increased incompetence in the field wherein the person gained status. In their field, we would expect high competence. Decreased competence in their field would come about from diminished interest in that field, from the overjustification effect.