> the CEO is also an employee and he could have done this more privately
Nope. One, it is impossible for somebody of his prominence to take two months off work and not have it be noticed. And two, his point here isn't to take two months off. It's to signal to every one of his employees that it's ok.
One of my current boss's best habits is going home on time. And occasionally he'll go home early when he's worn down and unproductive, saying, "Man, I'm not getting anything useful done; I'm going to go home now." Not only is this a smart thing for anybody to do, but it's great in a boss because it gives everybody implicit permission to do the same when necessary.