““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 ”
FAA Emergency Directive Targets Eclipse 500
During an encounter with wind shear at Chicago Midway Airport on June 5, the pilot of an Eclipse 500 pushed the thrust levers (throttles) forward with enough force to cause a software error that locked both engines at full power. Unable to slow the airplane for landing, the pilot elected to shut down one engine for the subsequent landing attempt. When he did, the thrust on the working engine dropped to idle and became unresponsive to thrust-lever inputs, resulting in a hard landing that blew out both of the airplane's main tires. No one aboard the airplane was hurt, but the incident prompted an FAA emergency airworthiness directive on June 12 requiring inspections of the thrust levers in more than 200 in-service airplanes. Nearly all of them had completed the checks at press time, with similar anomalies uncovered in two aircraft, according to Eclipse Aviation. The company is working on a software update to prevent a similar incident from occurring in the future.