Logical conclusion

Fascinating statistics. Companies that let the CEO use the corporate jet run a risk: when they first supply the CEO with a jet, their stock generally skyrockets–reflecting increased earnings?–the source doesn’t say. But when the CEO starts using the jet for personal purposes (golf treks to Atlanta country clubs, for example), the stock goes to hell. And according to the graph they drew on Wall Street Week & More (on PBS on Fridays), it really does plunge dramatically below the baseline.

Significantly, the more educated the CEO, the less he (and yes every CEO with a corporate jet was male) tends to use the jet for personal purposes–except for lawyer CEOs. Lawyer CEOs used corporate jets for personal purposes about as often as the least-educated CEOs. Commentators on the program suggested perhaps that’s because CEOs-who-are-lawyers may have negotiated better contracts. But having lived with an incredibly smart lawyer for 18 years, I’d say it’s just as reasonable to view the situation in a less favorable light. But hey…

ANd here’s the killer: the stock prices never recover after their precipitous plunge following the CEO abuse of corporate privileges/funds. Which suggests that CEOs who aren’t open and honest enough to blog–or to support their employees’ blogging–will eventually cost their stockholders money.

How’s that for logic? ” ) Seems self-evident to me…

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