““CEOs go to their vacation homes just after companies report favorable news, and CEOs return to headquarters right before subsequent news is released. More good news is released when CEOs are back at work, and CEOs appear not to leave headquarters at all if a firm has adverse news to disclose. When CEOs are away from the office, stock prices behave quietly with sharply lower volatility. Volatility increases immediately when CEOs return to work.” —David Yermack, a New York University finance professor, whose recently released study shows a correlation between when CEOs take their private jets on vacation and movements in their companies’ stock price ”
Botelho Quits as Embraer Chairman
Maurício Botelho resigned as chairman of the board of Brazilian aircraft manufacturer Embraer “for personal reasons" on January 13. Vice chairman Hermann Wever will fill the top job until the company elects a new chairman. Botelho, who served as president and CEO of Embraer from 1995 to 2007, led its restructuring, growth and globalization efforts. The year before he took the helm, the company lost $330 million on revenues of just $250 million. By 1998, however, Embraer was recording profits and by April 2007, when Frederico Curado took over as president and CEO, revenues exceeded $5.2 billion and net income was $489 million.