““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 ”
Embraer Reports Progress with Phenoms
Embraer's Phenom 100 entry-level jet received European Aviation Safety Association certification in April. The Brazilian manufacturer introduced the five-passenger twinjet in 2005 and earned certification last December from the Brazilian Agencia Nacional de Aviacao Civil and the FAA. As of late April, 14 Phenom 100s had been delivered. Meanwhile, Embraer is deeply involved in certification tests of the Phenom 300, which the manufacturer expects will obtain FAA and Brazilian approval by year-end. The manufacturer's Legacy 450 and 500 are entering the detailed design phase, with certification pegged for the second half of 2013 and 2012.