““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 ”
Legacy 500 Program Moves Forward
On December 23, Embraer rolled out the first midsize Legacy 500 from the production hangar at the company’s São José dos Campos, Brazil headquarters. “This is a significant day for the Legacy 500 program,” said Embraer Executive Jets vice president of programs Maurício Almeida. “Releasing the aircraft from production to the test team will allow us to gather vital information during ground tests, which will be used to shorten the flight-test campaign.” The Legacy 500 is scheduled to fly in the third quarter. Embraer expects the jet, which boasts a 3,000-nautical-mile range, to be certified in Brazil late next year, with approvals from other aviation authorities to follow. We had a full report on the Legacy 500 in the December 2011/January 2012 issue of BJT.