More than 40 directors have dropped off the WA Business News rich list during the past 12 months.
THE share market is in a constant battle between the opposing forces of fear and greed. During the past 12 months, fear won.
Many executives have seen billions of dollars wiped from the listed value of their companies, even when they and their businesses have done all the right things.
A rare exception was Perth-based international education provider Navitas - its directors were among the few Western Australian executives to increase their net worth during the year.
Directors in charge of badly run or opportunistic businesses - those that only thrive in boom times - have been forced out altogether, or are languishing over penny stocks that are unlikely to improve any time soon. They include a string of ill-prepared miners and mining services companies that took advantage of the boom to float their companies.
In May last year, there were more than 130 directors from WA with company holdings worth more than $10 million, according to data collated by WA Business News. Forty directors have since dropped off that list.
The executives at Fortescue Metals Group still dominate WA's rich list, although all have suffered significant paper losses during the year, after the darling of the share market lost its shine. Thirty per cent stakeholder Andrew Forrest saw the worth of his holding in the company slide from a peak around $9.5 billion to $2.5 billion in 12 months, although he did pull some money out at various times during the period.
After several years of spectacular returns, most directors exposed to the mining industry were hurt badly, with the exception of those tied to recession-proof gold.
Nonetheless, WA-born directors still largely make their money from the stuff they find in the ground, which contrasts with their counterparts in other states, who dominate the retail, gambling and funds management sectors, among others.
Aquila Resources chairman Tony Poli remained near the top of the director list, despite suffering at the hands of the economic downturn, as did Christopher Ellison, who has large holdings in Mineral Resources.
Peter Meurs, who is part of the so-called 'Worley three', witnessed engineering group WorleyParson's share price drop below $11 a share in November last year, yet he remains near the top of the list with a net worth of almost $260 million.
Although geologists had a tough year - with a falling Kagara share price dramatically cutting the value of chairman Kim Robinson's stake in the company - it could be argued that accountants had it tougher.
The value of Mr Poli's stake in Aquila Resources was cut by well over a half during the past 12 months to $300 million. Mr Poli is a trained accountant and entered the mining industry in the early 1990s.
Accountant John Young of Great Southern had a worse year with the company falling into receivership this week. Mr Young will now watch rivals pick at the remains of the failed agribusiness company he founded. His stake in Great Southern was valued at more than $75 million one year ago.
There were some sectors that proved resilient to the economic slowdown, allowing directors to guard or grow their wealth.
Navitas managing director Rod Jones' shareholding in the company increased by about $30 million, to $140 million, as stock in the listed education provider moved back towards its 2007 share price highs.
Mr Jones, who recently was named Ernst & Young's Australian Entrepreneur of the Year, said earlier this year that the downturn hadn't had an impact, and that the company would continue with its international expansion plans.
Mr Jones announced in March that Navitas would open its sixth college in the UK, after reaching an agreement with the University of Plymouth to offer pre-university and pathway programs for students seeking to gain access to the university's courses.
The founder of Perth-based internet service provider iiNet, which was started in Perth in 1993, has recovered most of his money eroded during the economic crisis. Michael Malone's stake in the company is worth about $35 million, but was worth many millions less just a few months ago.
Local stockbroker Euroz shed more than half its share price during the year, pushing the value of its directors' shares below the $10 million cut-off for the WA Business News list. Executive chairman Peter Diamond and directors Jay Hughes and Andrew McKenzie each took home $1 million-plus bonuses last year, which was a 25 per cent increase from the year before.
Executives stashing bonuses under mattresses would have generally fared much better than those with all of their money tied up in company stock. The S&P/ASX 200 has fallen 35 per cent during the past 12 months.
Another notable local, gold prospector Mark Creasy, has considerable interests in a number of listed miners, which would place him among the state's wealthiest people - although not on the director's rich list.
There are a few Western Australian executives among the top 20 who have made their money from non-mining related activities. Kerry Stokes' media interests make him one of the nation's wealthiest people, despite share price woes at both the Seven Network and West Australian Newspapers (WAN). Seven's share price has fallen by 35 per cent in 12 months, and WAN has shed 55 per cent of its value.
Peet chairman Anthony Lennon has almost $250 million tied up with the property developer, making him WA's fifth wealthiest director. His net worth could be much higher, however Peet shares haven't been near the heights recorded in 2006 when they peaked at almost $4.50 a share. Stock in the company is now trading around the $1.50 mark.
Automotive Holdings Group stakeholder Vernon Wheatley is carrying $80 million worth of company stock. AHG shares were trading as low as 50 cents in January, but have since recovered to about $1.30, which is still well down on levels reached two years ago.
Western Australians continued to punch above their weight nationally, with seven representatives among the country's richest 25, according to Forbes Asia. Second-generation stewards of wealth Gina Rinehart, Michael Wright and Angela Bennett figured in the list, headed by James Packer.
