The program manager wasn't initially aware of the arrangement. When I mentioned it to him, he basically threw a professional fit along the lines of "To get work done I need you here when everyone else is here." He'll even readily admit that I got plenty of work done while contracting and setting my own hours and location - enough that he and the company wanted me salaried - "but it's not the same now". The execs that I negotiated with don't have much backbone and won't stand up to him or our owner. They are well aware of the situation, and when I go through them and leave the PM out of scheduling, they're always okay with whatever I say I'm going to do (I don't even bother asking, I just tell them); after the fact, he'll huff and puff for a while, but he never actually says anything explicitly. Unfortunately, he and I work very closely together, so I don't often have the opportunity to go through the execs.
The night before a particularly harsh snowstorm, I even had a conversation with him about working from home the next day. We talked about what I could do from home, I literally showed him the printouts of the background material (and had digital copies on our office server and on my laptop), and he said he was okay with it. When I wasn't at the office shortly after 9:00am the next morning he started calling me. Even though I had already been working for close to an hour and sent him updated files showing what I had already completed, he wanted me to drive in.
To add to the frustration, we frequently have to travel for work. Of course, no one, including the PM has a problem with work done remotely in those situations.