““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's Executive Jet Division Looks Healthy
The new executive-jet division of Brazilian aircraft manufacturer Embraer-best known in past years for building regional airliners-is doing remarkably well. Third-quarter numbers, which the company released in November, show that it had received 300 orders for its new Phenom 100 very light jet and Phenom 300 light jet as of September 30. It also delivered 17 Legacy 600s in the first three quarters of 2006 and, according to an Embraer spokesman, "2006 will be a record year for Legacy 600 deliveries." Embraer's executive jet division accounted for 20.5 percent of the company's net sales total of $894.1 million during the same time frame.