Fundamentally, rules regarding sex derive from biological characteristics on one hand and rules regarding social interaction on the other. The joke here is treating them like a video game, where the lead designer can decide to add or remove gameplay features if they think it will make the game better (or make them more money).

Naming Jacob Batalon the “CEO of Sex” (equivalent to the lead designer role in this “sex as a video game” construct) adds another level to it, as one’s initial expectation for someone with that title is a classically handsome man, which Jacob Batalon – his other qualities notwithstanding – is most certainly not, and never claimed to be.