Is Richard White plotting a CEO comeback at WiseTech? Investors seek answers

A top analyst is seeking to know what Richard White’s intentions are regarding the CEO role at WiseTech and whether he is plotting a return after a boardroom exodus at the tech group.

Pictured clockwise from main, WiseTech founder Richard White and directors who have resigned: Fiona Pak-Poy, Richard Dammery, Lisa Brock and Michael Malone

Investors are seeking to uncover “what has fundamentally changed” at WiseTech after four independent directors – including chair Richard Dammery – suddenly quit the company in protest of founder Richard White’s new $1m a year consulting role.

Crucially, one analyst has questioned whether Mr White – who founded WiseTech 30 years ago – is plotting to return as chief executive.

The boardroom exodus blasted almost $8.2bn off the logistics software titan’s market value after the directors resigned, citing “intractable differences in the board and differing views” on Mr White’s role.

Mr White resigned as CEO late last year following a series of sensational allegations – including that he exchanged business advice for sex – but moved into the consulting role weeks later, keeping the same salary he received while CEO.

The billionaire is WiseTech’s biggest shareholder with a 36.7 per cent stake but promised investors he would not “override” management in his new advisory role last December.

Citi analyst Siraj Ahmed says the lack of independent oversight and governance at the $32.53bn company was a concern and whether it opened the door for Mr White to return as CEO.

“The primary focus of most of our investor conversations was on what has fundamentally changed after four independent directors resigned,” Mr Ahmed said.

“We also expect to receive an update on the search for a CFO and CEO and whether the intention is for Richard White to come back as CEO. We still see a role as strategic adviser, but as an executive director has the best way forward, as it also addresses succession risks.”

The $93bn superannuation giant HESTA, one of the tech company’s top shareholders, said it was disappointed the board “has not been successful in its efforts to confront the concerning issues at WiseTech and accelerate necessary succession planning”.

“We look forward to hearing from the company regarding succession planning and restoring an independent board at its half-year results briefing on Wednesday,” HESTA’s head of portfolio management, Jeff Brunton, said. “We believe this is vital to rebuilding investor confidence.”

WiseTech requested a trading halt last week, pending an update on a governance review involving Mr White. It told the ASX earlier this month that it received two more complaints from an employee and a supplier about Mr White’s behaviour.

But a WiseTech spokeswoman would not confirm on Monday if a company review being conducted by Seyfarth Shaw and Herbert Smith Freehills would be made public when it is completed.

“One of the key questions from a governance perspective is the outcome of the final report looking into the allegations against Richard White,” Mr Ahmed said, while also querying the future composition of WiseTech’s board.

“With no independent director left on the board – both Charles Gibbons and Mike Gregg are early investors in WiseTech – and (WiseTech’s) announcement talking to additional director appointments in due course, the question is how many independent directors are expected and by what time frame this is expected to happen.”

WiseTech founderRichard White, interim CEO Andrew Cartledge and outgoing chair Richard Dammer at the company's investor day in Sydney late last year.

Mr Dammery, Lisa Brock, Michael Malone, Fiona Pak-Poy said they will quit the software giant on Wednesday

The latest bombshell to strike WiseTech came as the company said it also expected to deliver earnings at the bottom end of its $1.2bn to $1.3bn range. It will report its half-year financial results on Wednesday.

Mr Ahmed said the previous earnings guidance was “arguably optimistic” when considering the rollout of three major products in the same year.

“We see potential for the share price to drift back up if the revenue downgrade is seen as just a timing issue and some of the governance issues are addressed,” Mr Ahmed said.

Linda Rogan and billionaire Richard White settled their legal fight last year.

“The key question for the 1H result tomorrow is whether the recent issues have had any impact from a customer standpoint, including delays to global rollouts. If it relates to the timing of release of new products, the question is whether the $US16m to $US33m revenue downgrade relates to Container Transport Optimisation (which was meant to be released in the June quarter) or whether the take-up of ComplianceWise (which was released in Dec’24 quarter) has been slower than expected.”

Last November, Mr Dammery said the review – which WiseTech had engaged law firms Herbert Smith Freehills and Seyfarth Shaw to complete – had so far “no evidence” of misconduct, with the external lawyers attributing Mr White’s behaviour to “creative abrasion”.

Not long afterwards, WiseTech co-founder and director Maree Isaacs sold her stake of 10.2 million shares to Mr White.

Mr White, who is worth about $15bn, tried to bankrupt former lover Linda Rogan after she alleged he offered her business advice and a $13m mansion in Sydney’s Vaucluse in exchange for sex.

Ms Rogan purchased $90,000 worth of luxury furniture for the property, but claimed it was useless after she was locked out of the mansion when Mr White’s now wife Zena Nasser discovered the pair’s affair.

Ms Rogan successfully applied for garnishee orders to get the $90,000 from Mr White’s bank account, but he filed bankruptcy proceedings against her to get the money back.

Mr White and Ms Rogan settled their federal court dispute last month, but the legal fight sparked other allegations.

Another woman, psychologist Jenna Riches, told The Australian Mr White had also allegedly offered her business advice in exchange for sex. The Australian also revealed Mr White purchased a property in Lane Cove in 2018 for businesswoman Marcia Kensell, before their sexual relationship also fell through.

Originally published as Is Richard White plotting a CEO comeback at WiseTech? Investors seek answers