Administrator’s rights removed from Boss’ folders

I’m the only SysAdmin in a privately owned company, supporting about 80 PCs and 8 Servers.
Last week my Boss, the solely owner of the company requested, that the administrative rights should be removed from his folders on the server.
I explained, that as I can remove the rights I can give them back – and that the backup software is using the Administrator’s account and would not be able to backup his data. He insisted and I accomplished the task.
I just wonder, how this situation is handled in other companies?