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I'll get downvoted to hell for this, but the CEO is at least partially right. It is really hard to get to know people and build trust remotely.
I started my first post-college job in August of 2020. Most people were remote, but I was not due to the nature of my work. It is extremely hard to get to know people exclusively over email, phone calls, and video calls. It's frustrating not being able to get to know people even at the surface level. Knowing a little bit about your coworkers allows you to build rapport with them. Video and voice calls can be unreliable, and people can be very difficult to understand without in person cues and the ability to read lips. I say all of this as a very introverted person with social anxiety.
I wish people would move away from the will be downvoted for this statement before saying something. It's just meaningless votes, and message is stronger without it than giving the impression of caring about karma or a willingness to stand by it regardless of reaction by not even acknowledging it.