Senior Exec Sexual Jokes Regarding Father-in-law

I work for a public company. During a meeting at work I shared a story about a time when I had to scrub my father-in-laws back at a public bathhouse when living in Japan. It was a customary thing to do. A senior exec replied "did you give him a reach around and jack him off ... and did he reciprocate?" He went on and on for a good couple of minutes making similar comments. He did this on two separate occasions ... once with the same group including my direct boss, and a second time in private - that was really uncomfortable. I was pretty embarrassed and felt humiliated. I actually like my father-in-law. He's a great guy. I couldn't report this given the dynamics of my workplace. My boss is a buddy with the guy that said all of this and since he was witness to it at least once and never took action I just felt that bringing it up or taking action would lead to some form or repercussion. Its been bothering me and has effected my ability to work with this exec. What are my option