““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 ”
Brazilian Midair Crash Spawns Lawsuits
Two lawsuits have been filed in the aftermath of the September 29 midair collision between an ExcelAire-owned Embraer Legacy 600 and a Brazilian Gol Airlines 737-800. The Legacy landed with no injuries to its seven occupants, but the 737 crashed, killing all 154 aboard. Both lawsuits have been filed against U.S. charter operator ExcelAire, the two pilots flying the Legacy and avionics manufacturer Honeywell. The Legacy had been purchased from Embraer and was being flown to the charter operator's headquarters at Long Island MacArthur Airport.
An attorney for the two pilots, who at press time were still being held in Brazil, expressed confidence that they will be exonerated. A statement from Honeywell said the company is "not aware of any evidence that indicates that the transponder on the Legacy was not functioning as designed or that Honeywell was responsible for the accident." An ExcelAire statement called civil lawsuits "premature."