Richard White faces shareholder backlash after he picks direct report to become next CEO

Hesta has threatened to sell down its shares while the ASA has demanded a ‘stronger, independent board’ after WiseTech promoted an insider with no listed company experience to CEO.

Richard White says WiseTech’s new CEO Zubin Appoo has ‘proven leadership skills’ and an ‘extensive background in technology and product development’.

Industry fund HESTA is holding to its threat to dump WiseTech after the promotion of one of billionaire Richard White’s direct reports to the top job cast doubt over WiseTech’s rehabilitation.

The company’s “capacity to deliver cultural change remains a key risk” a spokesman for the Debby Blakey-run super fund said, as the business reels from a sex scandal that engulfed its founder Mr White.

HESTA on Monday said WiseTech remains on its watch list, which means it will contemplate divestment if it is disatisfied with how a company is remediating risks. Industry giant AustralianSuper sold its $580m WiseTech stake in March due to governance concerns.

Meanwhile, Australia’s peak shareholder lobby says the succession fumble underscores the need for a “stronger, independent board”.

Mr White resigned as CEO last October following allegations he exchanged business advice for sex, before a boardroom exodus sparked his return to power as executive chairman in February. On Monday he appointed Zubin Appoo to lead the company.

Mr Appoo worked at WiseTech for almost 15 years until 2018 as head of innovation and technology. Mr White hired him again in April as his chief of staff and deputy chief innovation officer.

Mr White had crowned himself chief innovation officer the same day as he cemented his grip on the company.

“We are looking for the new CEO to drive cultural change, demonstrate independent thinking and constructively engage with investors. We also expect him to take on increasing responsibility for strategy and innovation,” the HESTA spokesman said.

“A strong leadership team around the CEO is essential to investor confidence. We await confirmation of remaining roles in the management team over the coming months as the capacity to deliver cultural change remains a key risk.

“WiseTech remains on our watchlist while it continues to work through governance, leadership and culture concerns.”

HESTA, whose chair is former federal attorney-general and health minister Nicola Roxon, owns about 0.6 per cent of WiseTech.

It acted on a threat to sell its shares in Chris Ellison’s Mineral Resources in May, having placed the stock on watch since October 2024, after Ms Blakey concluded “we don’t currently see a path to our concerns being addressed” following the sudden resignation of three directors.

Australian Shareholders Association chief executive Rachel Waterhouse said it was “highly unusual” that a top ASX 20 company appoint a CEO with no prior experience leading a listed company.

“This decision places even greater importance on a strong, independent board to ensure oversight, accountability, and stability,” she said.

“Mr Appoo’s previous experience at WiseTech and recent executive roles may offer some continuity during a key phase of growth. However, ASA has consistently raised concerns about WiseTech’s governance structure, and many of those concerns remain.

“As a founder-led business, WiseTech benefits from long-term vision, but clear accountability and reporting lines are essential to managing key person risk. With the executive chair retaining responsibility for product, innovation, and strategic investment, while the CEO reports directly to him, the structure risks concentrating decision-making power and reducing board oversight.”

Ms Waterhouse said the appointment of former chairman Andrew Harrison as lead independent director also failed to satisfy ongoing governance concerns.

“ASA urges WiseTech to strengthen its governance framework by restoring a majority-independent board and improving transparency around succession planning in the interests of all shareholders.”

Mr Appoo will be paid a base package of $1.4m, which includes equity of $700,000 a year that WiseTech said would be delivered in the form of share rights. He is also eligible for $1.05m in annual performance bonuses.

WiseTech's new CEO Zubin Appoo.

This compares with Mr White’s base salary of $1m during his time as CEO.

WiseTech said Mr Appoo would have accountability for performance and growth, including culture.

“Since rejoining WiseTech as chief of staff, Zubin has been working closely with our senior leadership team, our development teams, as well as customers, and investors," Mr White said. “He has immersed himself in WiseTech’s business operations with a focus on driving innovation, value creation, and efficiencies.

“His extensive prior experience at WiseTech, and his performance since rejoining, prove he is able to lead WiseTech. The board, senior leadership team and I personally look forward to working with Zubin to accelerate value creation for WiseTech shareholders, customers and staff.”

Lead independent director Andrew Harrison said Mr Appoo’s appointment followed an “internal and external process which considered a number of qualified candidates”.

Mr Appoo said he was honoured to be appointed CEO. “I am a strong believer in WiseTech, and have been a shareholder since 2005. I’ve been a part of, and witnessed, the immense impact WiseTech continues to have on the global logistics industry since its inception more than 30 years ago,” he said.

“I’m looking forward to working together with the board, the strong senior leadership team, including Richard, and the wider WiseTech family, as we drive long-term growth.”

Chief financial officer Andrew Cartledge had acted as interim CEO since last October, delaying his retirement plans after Mr White’s brief resignation.

WiseTech said Mr Cartledge would remain an employee of WiseTech until his retirement.

Originally published as Richard White faces shareholder backlash after he picks direct report to become next CEO