““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 ”
UK Approves Increased Flight Activity at Farnborough Airport
The annual limit on flights into and out of the London-area Farnborough Airport, which is used exclusively for business aviation, will rise incrementally from 28,000 to 50,000 between now and 2019. This follows TAG Aviation's successful appeal to the UK government against an earlier local government decision to block the increase. The airport, which TAG runs under a 99-year lease from the government, has also been cleared to increase annual weekend aircraft movements from 5,000 to 8,900 over the same time frame. This year, TAG will lift the overall movements limit to 31,000 and the weekend limit to 5,500. Next year, these limits will climb again to 37,000 and 6,500 movements, respectively, and they will then keep rising gradually through 2019.