Business Jet Traveler » October 2009

October 1, 2009
Richard Santulli wrote the rules on fractional ownership, and in the process
Richard T. Santulli, who resigned in August after nearly a quarter century as chairman of NetJets, had never been in an airplane-had in fact never been outside the New York/New Jersey/Connecticut metropolitan area- until he turned 21 and spent his honeymoon in Puerto Rico.

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Quote/Unquote

““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 ”

-David Yermack