Average personal wealth of US chief executives drops by $53m

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Chief executives of the biggest companies in the US suffered a total fall in the value of their wealth of a staggering $53 billion according to management consultants Watson Wyatt.

On average the value of their assets fell more than 40%. The firm said chief executives had suffered disproportionately during the financial crisis leaving many "demoralised" and feeling unfairly treated. Ira Kay, head of Watson Wyatt's executive compensation practice, said: "That's a staggering number. They suffered more than most in dollar and percentage terms. Basically they now have only half left. They came in with certain expectations and now they are demoralised."

His study was based on America's largest companies by stock market value, and bosses who have been in their jobs for the last three years. It is bound to fuel debate in the US over massive pay and bonuses seen mainly on Wall Street. Kay's calculations show that, on average, the value of shares and options held by chief executives fell by 42% during 2008.

He said: "They don't think: Good, I got a $1 million bonus last year.' If their stock went from $15 million to $13 million, to them it's like a $1 million net loss." He said that while the crisis put pay and bonuses in the spotlight he did not believe it was caused by excessive pay packages.