This is probably a reasonable threat for executives to worry about, but it's still ultimately an expression of "we're concerned about a threat where breaking into a home and bugging the device or swapping it with a compromised one is a real concern".
This is closer to "if you can pay a team to go and find a way into that specific person there" then they're going to succeed.
But you're already close to "infiltrate the window washing company, and stick solar powered listening bugs to every window on the upper floor suites".
Pen-Testers use the 'cloned cleaners' pass' thing all the time and it works surprisingly well.
Most people have their email, personal photos, medical records, financial records, chats etc. on their phones. If you believe your phone is likely compromised, you should first move all of those off your phone before being concerned about realtime audio recording.
A year or so back I stayed over with some extended family, one of which was 'In to IT and earns a living from it. During that time (using the I.T guy's network) I noticed that one of my phones was eating through the battery at a crazy-stupid-mad rate. A quick check showed that this particular phone had begun uploading a metric shit-ton of data on an otherwise normally asymetric data profile (in other words Data Uploaded vs Data Downloaded Ratio).
A check with the 'family IT guy' confirmed that he had Remoted In to a high value clients' system to trouble shoot something at around the same time that one of my phones began to furiously upload any and every thing on its' memory card.
Sounds like one of those "Cool Story Bro" types stories right?
All I will say is that because one of my 'Low Hanging Fruit' thangs got p0wned I was able to alert the $corp of the problem (since the probe originated on their end not mine).
As with all things in Life, YMMV.
Exactly. From most people, "smartphones are spying on us" sounds a little tinfoil hat. Coming from the Director of Military Intelligence, however, gives the message some credence.