WiseTech’s Richard White ‘truly sorry’ as review clears him of misconduct

Embattled WiseTech founder Richard White says he is “truly sorry” for the impact the media storm has had on his family, loved ones and shareholders, as an ongoing board review cleared him of alleged misconduct, including an accusation of bullying.

Addressing shareholders virtually in a pre-recorded message at the company’s annual meeting on Friday, White, who is one of Australia’s richest people, said the past two months had taken a significant toll on WiseTech Global, its employees and White himself.

“I deeply regret the impact this recent media has had on the people around me – my family, friends, loved ones, the WiseTech team, and you, our shareholders. I am truly sorry for how this has affected each of you,” White told investors.

WiseTech Global founder Richard White delivered a pre-recorded message to the company’s AGM.Credit: The Age

“While this time has been difficult and challenging, I want to assure you that this has not diminished my passion and dedication for WiseTech and what this business will achieve in the long term.”

Chairman Richard Dammery also addressed the controversies and said WiseTech would downgrade its financial guidance as a result of the events of the past two months.

WiseTech shares plummeted as a result, slumping nearly 20 per cent in early trading, before closing the day 12.3 per cent lower, at $121.80.

“Upfront, I need to say that the board is disappointed that the diversion of Richard White’s attention away from product development at a critical juncture has impacted the timing of the release of some of the three breakthrough products,” Dammery said.

“This will result in changes to both revenue and earnings guidance.

“Turning to events of the last month, for three solid weeks, intense scrutiny was brought to certain aspects of Richard White’s private life. Many of the allegations or assertions were, and remain untested and unproven, and I note that because some matters were before the courts, both the board and Richard White were constrained to comments we could make.

“As a board, we recognise and acknowledge that every founder’s personal identity is deeply intertwined with that of the company they build, particularly after a 30-year journey in WiseTech’s case. The board also acknowledges that the media attention deeply affected the company, its reputation and some team members.”

The company successfully passed all the resolutions at the meeting, including its remuneration report, despite the Australian Shareholders’ Association recommending shareholders vote against it.

WiseTech told investors last month that White would take a brief break before taking up a “full-time, long-term consulting role” where he will be paid the same annual salary – $1 million – that he received as chief executive.

Richard White with wife Zena Nasser. The couple married in July.Credit:

It followed an investigation by The Sydney Morning Herald, The Age and The Australian Financial Review, which revealed White paid for a multimillion-dollar house for an employee and had been accused by an outgoing WiseTech Global director of intimidation and bullying.

At present, WiseTech is being led by interim chief executive Andrew Cartledge, who on Friday said he would not be a candidate for the role on a permanent basis. The board has tapped executive search firm Russell Reynolds to search internally and externally for White’s replacement.

Dammery said on Friday that a review led by law firms Herbert Smith Freehills and Seyfarth Shaw LLP into White’s conduct remained ongoing but so far had not found impropriety by White, including no issues relating to relationship disclosures or improper use of company funds. The firms have interviewed 21 people in 31 interviews and were probing allegations that White failed to disclose personal relationships to the board and misused company funds.

WiseTech said Seyfarth Shaw found “White made disclosures as required under relevant policies” and there was “no evidence that any required matters have not been disclosed to the board”.

“Seyfarth Shaw are further satisfied that the close personal relationships set out in White’s disclosures were in each instance previously disclosed or known to relevant WiseTech officers and senior managers.

“Seyfarth Shaw considered expense claims by White and identified no evidence of inappropriate use of company funds.”

The review also dismissed bullying claims, finding that White had a “direct approach” that was consistent with the process of “creative abrasion”, which created value for the organisation but could also be confronting and uncomfortable for others. The review remains ongoing.

WiseTech, which provides logistics software, downgraded its revenue outlook for FY25, which the board said was related to the controversies surrounding White.

It now anticipates FY25 revenue of between $1.2 billion and $1.3 billion, compared with $1.3 billion and $1.35 billion in previous guidance.

The board’s decision to hold the AGM virtually – as it has done previously – angered the Australian Shareholders’ Association, and chairman Dammery said the company would adopt a hybrid model from 2025.

The Business Briefing newsletter delivers major stories, exclusive coverage and expert opinion. Sign up to get it every weekday morning.