My whole team works from home. I don't care what they do during the day, as long as they are completing the things they are supposed to complete, that it's quality work, and that they show up to scheduled meetings/calls. Also, for vacation, we got rid of it. As in, we no longer track it. You take the time off you want whenever you need to. We're all adults, and we all know what we need to accomplish. Some people take 4 weeks of vacation every quarter, which works out to 4 months a year. But, these people are hitting their client billing targets by working overtime for the time they aren't on vacation.

Getting rid of vacation tracking overall reduced the amount of vacation people take though. They no longer feel like they have to use it, and before, it was a use it or lose it policy.

Not a small company either, ~2000 employees.