““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 ”
Congress' Business Jet Ban May Go Too Far
Some members of Congress believe a measure being promoted by the Democratic Party leadership not only would prohibit representatives from using official or campaign funds to pay for use of private airplanes but would also prohibit those who are private pilots from flying their own airplanes.
The proposed ban is part of a series of measures adopted by the House that would prohibit representatives from accepting meals, entertainment and trips from lobbyists. As written, however, the rule "would prohibit members from using their personal funds for travel on their own aircraft for any purpose whatsoever, whether official or personal," said Rep. Darrel Issel (R-Calif.).
Issel also said the proposal would prohibit members of Congress from flying aboard "a nongovernment airplane that is not licensed by the FAA to operate for compensation or hire." He pointed out that the FAA licenses operators and carriers, not aircraft. Thus the rule would technically prohibit the members from flying on any airplane not owned by the government.