Comment by lysace
I have never worked in a company where an obviously incorrect CEO-demanded security exemption (like this one) would have been allowed to pass. Professionalism, boards (with a mandatory employee member/representative, after some size) and ethics exist.
30 years in about 8 software companies, Northern Europe. Often startups. Between 4 to 600 people. When they grow large the work often turns boring, so it's time to find something smaller again.
Ah, Northern Europe is probably the difference. This passes all the time in the US. It's probably more common in non-tech companies, as well.