““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 ”
Teddy Forstmann, Who Revived Gulfstream, Dies at 71
Theodore Forstmann, the private equity investor credited with turning around Gulfstream Aerospace, died Nov. 20 at age 71. His investment firm, Forstmann Little & Company, acquired Gulfstream in 1990 for $800 million. When the Savannah, Ga.-based aircraft manufacturer began experiencing financial difficulties, Forstmann took a hands-on approach and appointed himself chairman and CEO. During his seven-year tenure, he revamped the management team, created new product lines, introduced aircraft fractional ownership and launched the then-flagship GV. Forstmann sold Gulfstream to General Dynamics for $5.6 billion in 1999. In addition to being a founding partner of Forstmann Little, he was chairman and CEO of IMG, a global sports and media company.