Better question: who cares?
Those who care about good judgement and not having unnecessary surface area for blackmail or other exploits.
No one is calling him a sinner.
Many people, maybe even most people.
There's a saying, and I have no idea if there any truth to it, that you can't blackmail French CEO's and government officials this way. Their wives already know they are cheating on them and the public expects it.
Are you saying you don't? I would if I'd done that. If you don't you might want to start doing.
Those of us with a moral compass?
Even if you don't care about the adultery aspect, or the spying aspect(!), having sex with the people who report to you is a huge problem. First of all the power imbalance complicates questions of consent. Secondly, even if that's all fine, there are legitimate questions that could be raised by other employees about objectivity and favoritism. And for all of these reasons and more, it reflects very poorly on a leader in terms of their judgement and impulse control, which are reasonable traits to want a CEO to have.