““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 ”
Former JetBlue execs embrace business aviation
A group of former JetBlue executives have launched an operation designed around the Embraer Phenom 100. The company, JetSuite, has ordered 50 of the very light jets with options for 50 more, and plans to lease the aircraft to customers. First deliveries are expected next April. The company has also applied for a Part 135 certificate and expects to offer charter services from bases in Las Vegas and Los Angeles. JetSuite president Alex Wilcox was a founding director of JetBlue Airways, a position he held from 1998 to 2004. He then served as president and COO of Kingfisher Airlines from 2004 to 2005.