Yes, if a director and SVP are discussing the technical details of an incident, I would be concerned -- they should be concerned with putting the right people and processes in place to make those decisions.

When "Something had gone wrong that shouldn't have" bubbles up that far, you have an organizational issue, not a technical issue.

Of course, details might point upwards - plausible deniability could get damaged.

If the person who is charged with resolving the issue is capable, there's no point in a senior manager knowing the details outside of professional curiosity.