““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 ”
Kenn Ricci Back at Flight Options
Cleveland-based fractional provider Flight Options has named Kenn Ricci chairman. Mike Silvestro, meanwhile, becomes CEO, replacing S. Michael Scheeringa. Additional management changes at the company are anticipated, according to industry sources.Ricci returns to Flight Options 10 years after founding the company and six years after selling it to Raytheon Corp. Last November, Raytheon sold the company to Miami-based H.I.G. Capital, and in April Ricci took a minority share in Flight Options, as well as a seat on its board. Silvestro, who was Flight Options' vice president of sales and marketing from 2000 to 2005, most recently held a senior position with another fractional provider. Scheeringa will remain an investor in Flight Options and an "advisor to the board," a spokesman said. In a letter to customers announcing his departure, Scheeringa wrote, "Flight Options will [still] be pursuing strategic acquisitions, creative products and adding aircraft types," such as the Phenom 300 next year.