Richard White, the WiseTech board purge and a $10b share bloodbath

A boardroom bloodbath, a $10 billion share plunge and a “please explain” from the Australian Securities Exchange have marked a day of high drama at the embattled WiseTech Global, one of Australia’s 20 largest listed companies.

After a weekend of crisis meetings, the logistic giant’s four independent directors, including chair Richard Dammery, dropped a bombshell announcement on Monday morning that they were quitting due to “intractable differences in the board and differing views around the ongoing role” of controversial company founder Richard White.

Richard White with wife Zena Nasser. The couple married last July.

The personal wealth of White, who is WiseTech’s largest shareholder, plunged more than $3 billion due to the 20 per cent share rout on Monday.

The boardroom exodus followed further revelations by the Herald, The Age and The Australian Financial Review about the tumultuous relationship between White and wife Zena Nasser, and the control she is alleged to be exerting over business affairs.

White, 71, 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.

A joint investigation by the Herald, The Age and The Australian Financial Review recently revealed that Caroline Heidemann, a Brazilian woman on a temporary visa, has alleged in court documents that White provided her with financial support and assistance on a visa application in return for an ongoing sexual relationship.

White has denied her claim, saying he and Heidemann “were in a consensual personal relationship” and that he was providing financial support to her.

Last year, details of White’s colourful private life were disclosed after he was sued by Linda Rogan, another former lover, over a $92,000 furniture bill. Rogan, a wellness entrepreneur, had alleged in court documents that White “expected” her to enter into a sexual relationship in 2022 in return for a promise to invest in her business. Her claims were not tested in court as the pair reached a confidential settlement.

Linda Rogan sued Richard White in the Federal Court.

White had secretly purchased Rogan a $13 million Vaucluse mansion in late 2022. Only three weeks after the purchase was finalised, Nasser allegedly discovered the relationship and threw her out, leaving Rogan with the furniture bill.

White was forced to stand down as WiseTech chief executive officer last October amid revelations of a multimillion-dollar confidential settlement with another former lover, and allegations from a former WiseTech director that she had been bullied and intimidated by White. He denied those claims. The firm then told the ASX that White would instead become a consultant and retain his $1 million annual salary.

While a preliminary investigation found no evidence of bad behaviour on White’s part, the board recently received another report containing further allegations of inappropriate behaviour against employees at WiseTech, as well as a contractor.

As the fallout from the board exodus grew on Monday, WiseTech also disclosed that it had received a request from the ASX compliance team to explain why the company announced in October that White had signed the 10-year consultancy deal when no deal had been signed.

The ASX asked the board to explain whether a reasonable person might expect that the failure of White to sign the consultancy agreement might have a “material effect” on the share price. The board denied this, saying that “it was the board’s intention to formalise and document the fuller details of the engagement in due course”.

WiseTech’s co-founder Maree Isaacs

As part of the joint investigation by the three mastheads, questions were sent to the board on February 7 about White’s failure to sign the consultancy agreement. It was only after articles were published on February 10 that the board informed the stock market that White was yet to sign.

The ASX listing rules require that a company “must not release material price sensitive information to any person (eg the media or an analyst) until it has given the information to the ASX and has received an acknowledgement that the ASX has released the information to the market”.

WiseTech said it did not believe it had breached this rule as the information about White’s failure to sign the consultancy agreement was not market sensitive as White was operating under the terms of the consultancy agreement.

There is no indication as to what role White will play at WiseTech or whether he intends to resume the chief executive’s role following the board upheaval on Monday. The two remaining board members are early investor Charles Gibbon and Maree Isaacs, White’s co-founder and former lover.

Isaacs sold her entire WiseTech shareholding to White in November.

Former director Mike Gregg will rejoin the board to ensure the company has the number of directors needed to be publicly listed.

Analyst commentary after the board exodus highlighted that, whatever the issues with his personal behaviour, investors’ main concern was that White retained control of the spectacularly successful business he founded, having turned it into the biggest tech company on the Australian sharemarket.

E&P analyst Paul Mason said the independent directors’ departure probably resolves that fear, albeit with a need to bring on quite a number of new independent directors.

Matthew Haupt, portfolio manager at Wilson Asset Management, which owns WiseTech shares, told Bloomberg the exodus effectively ended the investor and board tension between retaining key talent and good governance. “Talent has won the day at the expense of corporate governance,” he said.

WiseTech also downgraded its financial forecasts on Monday, saying revenue would be at the low end of the forecasts given at its annual meeting in November last year, but profit margins would be at the top end of its guidance due to cost-cutting measures.

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