I suspect the "more likely to leave their jobs" is the part the executives actually care about.

If you're remote and there's an "upgrade" remote job, there's very little friction to switch beyond the usual onboarding. You don't have to find a local job for your spouse, sell your house, switch your kids' schools, etc. You just mail your old laptop in and wait for a new one to arrive. Maybe you have to get up early or work later to match the local time zone if you have many in-office coworkers.

And, if you work at a big company that pays well, it can also let you get off the hamster wheel early and "leave your job" for retirement by moving to a medium- or low cost of living area while continuing to get paid an outsized amount for the area.