Australia’s richest executives lose $24 billion in 12 months

The total wealth held by Australia’s richest 200 executives has been smashed by the global financial crisis, dropping from $44 billion to $20.3 billion according to BRW magazine’s executive rich list.   

News Limited executive chairman Rupert Murdoch tops the list with a shareholding of $3.38 billion, well down from last year’s value of $7.87 billion. Fortescue Metals group chief Andrew Forrest is second with $2.37 billion (down from $8.36 billion), followed by Frank Lowy ($1.83 billion of shares), James Packer ($1.54 billion of shares) and the executive chairman of plumbing group Reece, Alan Wilson ($1.05 billion).

The list, drawn from the 500 largest companies on the Australian Securities

Exchange, ranks the shareholdings of executives involved in the day-to-day running of their company, including all members of the management team, executive directors and executive chairman.

Not surprisingly, there have been a number of high-profile departures from the list, including Babcock & Brown chief executive Phil Green. His stake in the company was worth $173 million last year but is now worthless after the company collapsed into administration last week. Eight other Babcock & Brown executives were dumped from the list this year.

There are just five women on the list, led by Computershare executive Penelope Maclagan (the sister of company founder Chris Morris) who has shares worth $114.8 million.

Just 13 executives managed to increase the value of their shareholdings. Peter Bond from Linc Energy posted the biggest rise, jumping from 32nd position a year ago to 11th position on this year’s list. The incredible interest in the coal-seam gas sector has propelled Linc’s share price, boosting Bond’s fortune from $161 million to $360 million.

The list should make interesting reading for Treasurer Wayne Swan and Productivity Commissioner Alan Fels, who has been asked by the Government to investigate the issue of executive pay.

While it won’t be clear how executive salaries tracked during 2008-09 until later in the year, BRW‘s list shows that many of our top executives have felt the same pain as their shareholders.

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