““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 ”
New Air Charter Broker Launches Membership Plan
The recently launched Fame Route has announced a package of services ranging from discounted air charter flights, luxury car rentals and limousine service to upgrades at five-star hotels and VIP access to events and private golf clubs. The company does not own or operate airplanes, autos or facilities; rather, it acts as a broker and arranges what it says are "below-market rates made possible through the leveraged network resources of Fame Route." As an example, it cites estimated $3,500 charges for "reserved and scheduled private" roundtrip flights between New York and Miami. According to the company, it makes its money primarily from pay-as-you-go, $1,000-a-month membership fees. Headed by entrepreneur Gil Peter, Fame Route has offices in New York City and Kentucky.