““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 ”
FAA nixes Santa Monica Airport ban
The FAA has ordered Santa Monica [Calif.] Airport officials to halt implementation of a ban on aircraft with approach speeds greater than 121 knots. Airport director Robert Trimborn had advised airport users that after April 24, "only aircraft in the FAA-designated A and B categories will be allowed to operate" at the facility. The ordinance would have affected about 9,000 of the 130,000 annual aircraft operations at the airport. The FAA's order noted its "preliminary finding" that the ban "is likely unlawful." Having accepted federal money, the airport cannot deny Category C and D aircraft operators the right to use the airport, the FAA said.