The presumption is that remote means lower value or productivity as a default in classic companies. It's not necessarily a matter of luxury either; your C levels don't work from their yachts in a marina normally. Some are just too rigid in approach to change how they work even if it's demonstrably negligible. I had a client before that had a mostly distributed team and wouldn't let us increase the hourly rate unless we relocated to an office - few people even at the offices ever talked that often and we hardly ever met in person with the client ourselves even for those five miles down the road.
The usual tech company reasoning now is that the tools for remote work do not facilitate creative, spontaneous insights that are critical for competitive companies.