““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 ”
European Business Jets Expands Fleet
Fractional ownership firm European Business Jets (EBJ) plans to expand its fleet through the addition of an aircraft management division. The company, based 70 miles north of London at Cambridge Airport, is also considering adding new airplane types, including very light jets such as Embraer's Phenom 100 and the HondaJet. Earlier this year, EBJ introduced the Experience Card as a block-charter option to allow new customers to experience the use of private aircraft by purchasing five flight hours for $27,730. About half of its 25 clients are currently flying under this plan.