AustralianSuper backs Richard White’s ‘demotion’ as WiseTech shares soar

The second largest external shareholder in WiseTech says the firm has a strong ‘long-term value’ proposition and Richard White was right to step down into a $1m a year consulting role.

AustralianSuper – the nation’s biggest superannuation fund – has endorsed Richard White’s resignation from WiseTech’s board and executive, following accusations of bullying and exchanging business advice for sex, declaring the company can deliver strong “long-term value”.

WiseTech shares rebounded as high as 20 per cent on Friday, before giving up almost half those gains to close 12.7 per cent higher at $112.

Investors supported Mr White decision to step down as chief executive and director but not leave the company, moving into a consulting role in which he will be paid $1m a year – the same as his CEO salary – solving a succession drama at the logistics software giant and ensuring continuity of leadership and strategy.

AustralianSuper is WiseTech’s fourth biggest shareholder with a 2.79 per cent stake, making it the second largest external investor in the company. A spokesman said it endorsed the board’s approach, following a string of startling allegations about Mr White’s personal life.

WiseTech's Richard White refused to answer questions from The Australian on Thursday, while an employee attempted to act like a human shield. Picture: Liam Mendes

The spokesman said the fund said it has been engaging “extensively” with the board and management of WiseTech over the past two weeks.

“The fund notes that the WiseTech board has engaged appropriate experts to review the specific issues raised,” he said. “We support this approach. We remain a long-term investor in WiseTech and consider its long-term value proposition as strong.”

Analysts says Mr White will retain strong influence over WiseTech’s strategy despite being “demoted” from the company he founded 30 years ago.

While the allegations related to the 69-year-old’s personal life, they had attracted the attention of the corporate regulator and sent the company’s share price plunging before he stood aside.

“We do think the board and Richard White have come to a solution whereby governance and strategy have been effectively separated,” Citi Analyst Siraj Ahmed said in a note to investors.

Mr White will take a “short period of leave”, before returning to the consulting role. He will also step down as a director of the Tech Council of Australia to allow him to “focus” on his new position at WiseTech. He was appointed to the TCA’s board in June, being favoured over AirTrunk founder Robin Khuda.

Mr Ahmed said the leadership transition should not change WiseTech’s near-term earnings outlook, despite a potential “negative” share price reaction.

“We upgrade to buy with a new target price of $124.50 – down 10 per cent as we moderate our long-term growth forecasts,” he said.

Goldman Sachs analyst Kane Hannan also eyed a buying opportunity for the logistics software giant, raising his recommendation from neutral, with a price target of $138, up 39 per cent on WiseTech’s last closing price.

RBC Capital Markets analyst Garry Sherriff said Mr White stepping down as chief executive and as a director was a “positive development”, but expected him to remain a key player at the company.

“We believe that the underlying growth drivers of the business remain intact and relieving White from his managerial responsibilities to focus on product development is a positive step forward in addressing governance issues without outright dismissal of WiseTech’s visionary founder,” Mr Sherriff said in a note to investors.

Morningstar analyst Roy Van Keulen also said it was positive development but lowered his fair value estimate to $105 per share on what he saw as Mr White’s “demotion”.

“Although we consider the new role to be a demotion and a strong signal from the board, we expect White will be able to continue driving the CargoWise product vision and strategy,” Mr Van Keulen said in a note to clients.

“Given our assessment of WiseTech as a product-led company, we consider White’s continued involvement in this area of the business to be a positive outcome for shareholders.”

Mr White had tried to bankrupt former lover Linda Rogan over a $91,000 sum she spent on luxury furniture at a Sydney mansion he allegedly bought for her in 2022, before their affair was discovered by his now wife, Zena Nasser.

The allegations prompted a second woman, psychologist Jenna Riches, to come forward, accusing him of allegedly offering business advice in exchange for sex. It was also revealed he bought a house for another businesswoman he was allegedly in a relationship with, Marcia Kensell, in Sydney’s Lane Cove in 2018. A falling-out between the pair led to her taking legal action, but it’s understood they have now settled confidentially.

Despite saying that he had been speaking with WiseTech chair Richard Dammery “for many months” about a CEO succession and moving to another role at the company, WiseTech appeared not prepared for Mr White’s resignation.

It tapped chief financial officer Andrew Cartledge – who had planned to retire at the end of next year – as its interim chief executive. “Mr Cartledge has confirmed to the board that he is available to stay on beyond his planned retirement at the end of calendar 2025, as needed by the company,” the board said in a statement to the ASX.

“Mr Cartledge has also indicated to the Board that his retirement plans remain otherwise unchanged.”

Originally published as AustralianSuper backs Richard White’s ‘demotion’ as WiseTech shares soar