WiseTech’s disgraced founder Richard White has reasserted his control over the $32 billion group following a board exodus, but he faces a backlash from other investors and global trade worries.
WiseTech’s disgraced founder Richard White has reasserted his control over the $32 billion group following a board exodus, but he faces a backlash from other investors and global trade worries.
By Colin Kruger
February 26, 2025 — 10.38am
WiseTech’s disgraced founder Richard White has been appointed executive chairman of the $32 billion tech group, which confirmed that it is currently in breach of ASX listing rules after its independent directors and chairman quit as of today.
A statement from WiseTech after the release of its December half-year results said White will oversee succession planning, as well as product development and growth.
“I want to let you know that I’m fully engaged and here for the long haul,” White told analysts and investors on a conference call this morning.
“You have my absolute commitment to do everything within my power and ability to accelerate the business you have invested in and that has been so successful over the almost nine years since listing,” he said.
White also had a blunt message for his critics: Customers couldn’t care less.
“(They) don’t think about this market or these governance issues in Australia,” he said. “They think about what is right for them, for their product, for their business, and for the long term of WiseTech as it affects that business … time and time again, that comes across very clearly.”
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WiseTech unveiled another booming half-year result on Wednesday, with total revenue up 17 per cent at $US327 million ($515 million), net profit rising 38 per cent to $US77.1 million and cash flow of more than $US100 million.
But the logistics group put caveats on is growth outlook for the first time as clouds grow over international trade due to US President Donald Trump’s growing trade war.
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“[Earnings forecasts for financial year 2025 are] provided on the basis that market conditions do not materially change … noting that changes in industrial production and/or global trade (both favourable and unfavorable) may impact guidance,” it said.
WiseTech offers logistics companies a cloud-based platform to manage all of their global operations across different jurisdictions, languages and customs regulations.
On Monday, the announcement of the mass resignation of its independent directors – over irreconcilable differences with White over his continuing role at the group – sent the company’s share price plunging, even though the exodus all but assured White’s control of the group, ending market fears that the founder of the ASX’s dominant tech company could be pushed out.
The resignations are effective as of today, after the parting directors signed off on the company’s half-year accounts.
Their exodus will leave the board in the hands of three directors with long-term loyalties to White, including Mike Gregg, who rejoins the board today and will oversee the investigation into allegations against White.
The WiseTech founder has been fending off damning allegations of inappropriate behaviour for months. One woman dubbed him the “LinkedIn Lecher” due to his alleged propensity to approach women via the network to offer business advice in return for sex. White has denied the claims.
WiseTech said in its earnings release that an update on the status of a report into White’s conduct would be provided to the market next month.
WiseTech said the resignations have left it in breach of ASX listing rules requiring its audit and risk committee have at least three non-executive directors. The company said it intends to recruit additional non-executive directors as soon as practicable.
The turmoil has weighed on the stock, though the shares were 2.3 per cent higher at $96.71 around noon. The stock was trading above the $120 mark last week.
Analyst commentary after the board exodus highlighted that – whatever the issues with his personal behaviour – investors’ main concern was that White retains control of the spectacularly successful business he founded.
‘The magic and the brains’
E&P analyst Paul Mason said the directors’ departure probably resolves that fear, albeit with the urgent need to bring on quite a number of new independent directors.
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“In terms of management and board, we believe there were great concerns in the market about whether Richard White was being pushed out under pressure from the media and maybe the board,” Mason said.
Revenue downgrades – attributed to slips in the product release schedule – were blamed on White’s scandalous distractions, but at the same time confirmed for many his indispensability to the business.
But in an interview with Bloomberg on Tuesday, corporate governance expert Helen Bird said the catastrophic board purge creates problems for investors.
“If you’re an investor in (WiseTech) … you should look at this with some horror because there have been clear issues going on there, and he’s taking control,” she said.
While she describes White as the “magic and the brains” behind WiseTech’s success, she said no fund manager was going to be happy with what’s happening. “I wouldn’t say this is over by any stretch.”
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