WiseTech investors unconvinced by Richard White’s decision to quit as chairman
Investors will likely be unconvinced by a halfway house move from WiseTech even as its shares surged on Tuesday.
WiseTech chairman Richard White has bowed to shareholder pressure and quit as chairman of the tech company he co-founded in 1994.
The market cheered the news as shares jumped 10 per cent to $38.95. White will be replaced by Raelene Murphy as chairperson, but will remain a board director and continue as chief innovation officer.
The billionaire founder has been dogged for years over allegations about his private life, which included claims he helped an employee obtain a visa in exchange for sex and approached or dated multiple other younger woman. White denies the allegations about the sex for a visa.
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By continuing you agree to our Terms and Privacy Policy.“Recent personal media attention is creating an unnecessary distraction from the strength of WiseTech’s business,” he said on Tuesday.
“In my role as Chief Innovation Officer, I remain totally committed, and focused on execution of WiseTech’s growth strategy.”
Doesn’t change much
Tuesday’s half-quit solution is unlikely to appease large institutional investors and superannuation funds sensitive to their image as sophisticated institutions tied to the principles of workplace equality.
White’s history of messaging woman on LinkedIn matches none of that, and his approach of hoping the storm blows over does not feel sustainable.
“You have to ask does this change anything much? Probably not,” said Sean Sequeira the chief investment officer of Australian Eagle Asset Management.
“I think the market was probably expecting him to be removed completely. Since the end of 2024 the company’s had a number of issues as a result of his behaviour.”
Still, Tuesday’s share price rally signals the market’s approval of White’s better-late-than-never acceptance that it’s in the company’s best interest that he reduces his control, rather than increase it, under a muddled prior strategy.
“This is not the end of the issue, it’s just an adjustment to the board,” said Mr Sequeira.
“They’ve made multiple changes in the past and had external reviews. He’s still the largest shareholder and has been the driving force behind the company, but they have to think about the long term.”
WiseTech’s other challenges from AI
The company’s shares have suffered a horror 66 per cent tumble over the past 12 months and ASIC data shows hedge funds are betting on more falls under White’s tainted stewardship.
As of July 1 around 27.5 million shares - equal to 8.2 per cent of the company - were short sold.
The scepticism around WiseTech isn’t just linked to White’s scandal-plagued past. Some professional investors believe the $13 billion software company is also threatened by disruption from technologies linked to AI.
In particular, WiseTech was rocked by recent news that its largest customer DSV Global will quit WiseTech’s Cargowise platform to migrate to its own in-house solution to manage freight forwarding.
That news likely encouraged the short sellers as much as White’s troubled private life. WiseTech’s challenge now is to prove to the market its CargoWise platform will not lose more key clients under new chief executive and White ally, Zubin Appoo.
In February in response to the AI worries the Sydney-headquartered company said it would fire 2,000 staff equal to one-third of its workforce.
But that decision created more culture headaches, after White revealed some employees threatened management with acts of physical violence in response. The fallout capping a torrid period for a company once considered a share market superstar.
