Wealthiest Arkansans: A Look Behind the Numbers

The Northwest Arkansas Business Journal’s rankings of the wealthiest Arkansans, a popular feature since its debut in 1995, is on its last legs. The continuing loss of publicly traded companies from the state has made it much harder to come up with reliable data — and that is the only type we feel comfortable publishing.

This year’s installment profiles only the 10 wealthiest families, while the list of stockholders contains entries on 78 individuals or families who are known to own publicly traded stock valued at more than $1 million.

These rankings are not intended to be comprehensive and by their nature cannot be considered definitive. Instead, the research provides conservative estimates of individual and family wealth based on public documents, information obtained from the individuals and companies, and industry averages and estimates as determined by financial experts.

Stock holdings were based on closing prices on Nov. 1, 2002. They exclude stock options that are not exercisable and holdings that do not require disclosure by the Securities and Exchange Commission.

Because public stocks trade on a minority basis, a premium of 1.2 to 1.75 times any values could be paid to acquire control of a company.

Values placed on private company holders were deliberately conservative. Following the guidelines used by Forbes and Fortune, the value is based on what a prudent business person would pay to purchase the company. Actual market values would vary depending on earnings, buildings, debt, equipment and circumstances unique to an industry. There were no estate or capital gains tax considerations.

These lists generally include individuals or a nuclear family composed of husband, wife, parent and child, siblings, or some combination of those relationships. The Walton, Stephens and Murphy families were intentionally grouped to include all family members. Although a single name is listed, stock may actually be owned and listed in another relative’s name.

Anyone who wants to correct, clarify or make additions to research for the rankings should send information to Gwen Moritz, Arkansas Business, Box 3686, Little Rock, AR 72203, or call (501) 372-1443, or e-mail [email protected].