Murdoch returns to top of richest executive list

Mr Murdoch, chairman of News Corporation, had $3.4 billion in wealth compared to the $2.4 billion held by Mr Forrest in Fortescue, according to the BRW executive rich list, released yesterday. The list measures the value of executives' and managers' share holdings.

The bear market has savaged the holdings of both men, who have swapped places on the annual list. Sharemarket losses cut the wealth of the 200 richest managers and executives in Australia to $20.3 billion in 2008 from $44 billion the year before.

"It's a surprise the list has gone down so much," said BRW editor-in-chief John Stensholt.

"The All Ords was only off about 43per cent in the last year, while the list is down by half.

"So maybe it suggests that investing in some of these big rich people's companies is not such a good idea.

"They did worse than the overall market."

Mr Forrest had $8.4 billion in 2007 compared to Mr Murdoch's $7.8 billion at the same time.

Westfield group boss Frank Lowy ranked No.3 with $1.8 billion, followed by James Packer overseeing the Crown International with $1.5 billion.

Alan Wilson of plumbing supply maker Reece Australia came in at No.5 on $1.6 billion.

The lower total values of executive wealth lowered the bar for "small investment houses and fund managers who couldn't make it last year", MrStensholt said.

The wealth destruction triggered by the global financial crisis and resulting downturn knocked all of Babcock and Brown's executives from the list this year.

"Last year there were nine Babcock and Brown executives, including former chief executive Phil Green, on the list," BRW said. "This year there are none."

The listed investment group, buffeted by drops in asset values and investor scepticism about its business model, fell into administration this month.

In addition to Babcock and Brown's Mr Green, company founder Jim Babcock, former head of global real estate Michael Maxwell, and executive director James Fantaci all exited the list.

The list draws on executives who are involved in the day-to-day operations of the top 500 listed companies, ranked by market capitalisation, including management teams and executive directors, BRW said.

The list of 200 contained only six billionaires and five women. The richest of the women was Computershare's executive director Penelope Maclagan with $114.8 million.

Despite the plunge in commodities prices over the year, reducing both the value of mining stocks and the assets they hold on their books, the industry accounted for more of the rich than any other last year.