““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 ”
Gulfstream Reiterates G650 Is on Schedule
Gulfstream has announced that it expects FAA approval by the end of this year for its G650 ultra-large-cabin, ultra-long-range jet. Although the April 2
crash of a G650 during a test flight may cause delays in the certification program, the Savannah, Ga.-based manufacturer still expects to deliver 12 “green” G650s (with unfinished cabins) by the end of this year. Gulfstream, which has more than 200 orders for the model, is working with the National Transportation Safety Board on the crash investigation, according to Pres Henne, a senior vice president for the company.