““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 ”
Flexjet launches carbon-offset program
Flexjet, Bombardier's fractional ownership subsidiary, has announced a program that offers its shareowners the opportunity to offset carbon emissions each time they fly. Climate Care, an offset provider and a division of J.P. Morgan's environment markets group, has been selected as Flexjet's partner in the initiative. New and existing owners may join the voluntary program to offset carbon-dioxide emissions.
Participants will pay a per-hour fee sufficient to fund activities that generate an equal reduction in emissions. Funds derived from the fees are invested in Climate Care projects worldwide. As part of the program, Flexjet will offset all nonowner flights, including those for demonstration and maintenance purposes. The initiative is an extension of Bombardier's first carbon-offset venture, which the company launched in February 2008 for buyers of new business aircraft.