““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 ”
Senate Votes to Reinstate Barr Program
The Senate has passed a bill that would reinstate the Block Aircraft Registration Request (Barr) program, which allowed aircraft owners to block public access to tail numbers. “We thank the Senate for approving this bill…and we hope the House will finalize [companion] legislation to reinstate the program as soon as possible,” said Ed Bolen, president and CEO of the National Business Aviation Association (NBAA). While the House considers doing that, the NBAA and Aircraft Owners and Pilots Association are moving ahead with a lawsuit against the FAA, seeking to force it to reinstate Barr, which it dismantled last August. Court hearings in that case are set to start December 3.