““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 Operator Launches Fractional Program
Charter operator LyddAir has introduced Airshare, a fractional-ownership program offering pre-owned twin-engine piston and turboprop aircraft. At present, the fleet includes a pair of Piper PA31 Chieftains and a Beech Baron B58. The company, headquartered at Lydd Airport in southeastern England, is preparing to add a Hawker Beechcraft King Air 200. Unlike most fractional programs, Airshare allows owners to fly a specified number of days each year rather than a specific number of flight hours. A one-eighth share in the Chieftains, which sells for $50,000 to $60,000, entitles the owner to fly on 40 days for each year of a five-year agreement.