This week's stock market debacle has levied a hefty toll on the personal net worth of a flock of Los Angeles' wealthiest businessmen. For instance, 11 top executives at major area firms have lost more than $750 million in "paper" value of common stock they hold in their companies.
That figure is drawn from an informal survey of big Southern California companies where either top executives or substantial owners have large stock holdings. The figures on shares owned were obtained from the latest proxy statements filed by companies.
Paper losses were calculated by comparing the value of the business executives' common stock Thursday with the shares' 52-week high.
For purposes of the survey, the figures do not include wealth held in other forms by the individuals, who typically have other major investments that are not disclosed publicly. Also, some of the issues had already dropped from their 52-week highs before Monday's crash. And there was no indication that any of the business leaders have been selling significant amounts of the stock, meaning that the huge losses are still only on paper.
Kirk Kerkorian, 79% owner of MGM/UA Communications, has seen his 41,294,949 shares in that company fall 43% in value to about $330.4 million from about $583 million at its peak this year, a paper loss of about $252.6 million.
FOR THE RECORD
Los Angeles Times Tuesday October 27, 1987 Home Edition Business Part 4 Page 2 Column 6 Financial Desk 1 inches; 32 words Type of Material: Correction
C. B. Thornton Jr. is an outside director of Litton Industries and has never been employed by the company. The Times on Oct. 23 incorrectly listed him as a founder. The firm was founded by his father, the late Charles B. Thornton.
At Teledyne, Chairman Henry E. Singleton sustained a paper loss of about $184 million when the market value of his 1,554,283 shares dropped to about $422 million from about $606 million.
Also at Teledyne, George A. Roberts, president and chief executive, had the market value of his 99,755 shares decline to about $27.1 million from about $38.9 million.
The long-time chairman and chief executive of MCA Inc., Lew Wasserman, has sustained a paper loss of about $129.9 million on his 5,223,840 shares, whose value has dropped to $209 million from about $336.9 million.
Financier David H. Murdock, chairman and chief executive of Castle & Cooke, saw his 10,463,000 shares in the firm dwindle in value to about $193.6 million from about $279 million, a paper loss of $85.4 million.
Armand Hammer, chairman and chief executive of Occidental Petroleum has had his 1,276,213 shares drop in value to about $35.4 million from about $50.6 million.
Roy E. Disney, vice chairman and head of the animation department at Walt Disney Co., has found that his 1,338,822 shares are valued at $70.8 million, compared to about $110.5 million at the peak this year.
Earle M. Jorgensen, chairman of the company that bears his name, has sustained a drop in value of his 2,026,100 shares to about $50.1 million from about $61.8 million.
A founder of Litton Industries, C. B. Thornton Jr., who is still a director, found that his 581,310 shares of company stock has fallen to about $44.5 million from about $62.9 million.
Barron Hilton, chairman, president and chief executive of Hilton Hotels, has watched his 850,000 shares drop to about $55.7 million from about $78 million.
And Fred Carr, chairman and president of First Executive Corp., a big insurance holding company, had 1,749,689 shares of stock valued at about $36 million at this year's peak, but it had fallen to about $17.7 million on Thursday.
HOW SOME TOP SOUTHLAND EXECUTIVES FARED
SHARES OF VALUE AT COMPANY EXECUTIVE CO. STOCK 52-WEEK HIGH Castle & Cooke David Murdock 10,463,000 $279 million MGM/UA Kirk Kerkorian 41,294,949 $583 million Teledyne Henry E. Singleton 1,554,283 $606 million Teledyne George A. Roberts 99,755 $38.9 million First Executive Fred Carr 1,749,689 $36 million Occidental Petroleum Armand Hammer 1,276,213 $50.6 million Walt Disney Roy E. Disney 1,338,822 $110.5 million Hilton Hotels Barron Hilton 850,000 $78 million MCA Lew Wasserman 5,223,840 $336.9 million Earle M. Jorgensen Earle M. Jorgensen 2,026,100 $61.8 million Litton Industries C.B. Thornton Jr. 581,310 $62.9 million
VALUE AT % COMPANY THURSDAY CLOSE CHANGE Castle & Cooke $193.6 million -31% MGM/UA $330.4 million -43% Teledyne $422 million -30% Teledyne $27.1 million -30% First Executive $17.7 million -51% Occidental Petroleum $35.4 million -30% Walt Disney $70.8 million -36% Hilton Hotels $55.7 million -28% MCA $209 million -38% Earle M. Jorgensen $50.1 million -19% Litton Industries $44.5 million -29%