I got the impression that the email was a response to a specific executive's request for a vacation day, and the CEO was aware that vacation days were being abused by this executive, as well as others. As was already noted, there are plenty of bosses that manage to coast while taking credit for the hard work of those under them. I read this as the CEO letting this employee know that he knows. I also get the impression that Henty J. is aware that it is not an isolated situation among his execs, so this email was circulated as a warning.
I wouldn't condone using what should be a private email as a warning to others through the CC route, though. I just think there should have been 2 emails - one to the specific employee, and one as a memo to all execs. Nobody says the execs have to work there, but if they choose to do so, then they have to abide by the rules of the company. If the rules of the company truly suck, then they will eventually run out of people willing to work there.