WiseTech should address scandal-plagued former CEO’s conduct in person, says shareholder group

The Australian Shareholders’ Association has hit out at the board of scandal-hit WiseTech Global for holding a virtual annual meeting rather than face shareholders in person.

The Australian Shareholders’ Association has hit out at the board of logistics software company WiseTech Global for holding a virtual annual meeting this Friday rather than face shareholders in person to answer questions about the future of the company and the role of its founder Richard White.

“The fact that they continue to have a virtual AGM (in the light of the events leading up to Mr White’s departure as chief executive) is something we are really disappointed about,” ASA chief executive Rachel Waterhouse told The Australian on Tuesday.

“There are so many issues here.

“It would have been great to get people together in person.”

Ms Waterhouse said shareholders wanted to hear from the chairman, Richard Dammery, and directors themselves about the situation, and described the board’s insistence on not having a physical AGM as being “arrogant”.

Mr White – the founder and largest shareholder of the company who has not been seen in public since the announcement of his resignation as chief executive on October 24 following revelations about his personal life – is expected to make an appearance by video at the AGM.

Mr White is no longer a director but stays on as an adviser under a similar compensation package as he received as CEO, thanks to a deal struck with the board in late October for him to stand down.

ASA chief executive Rachel Waterhouse.

WiseTech chairman Richard Dammery. Picture: Hollie Adams

Ms Waterhouse said the rebound in the company’s share price since the announcement was a “vote of confidence in the organisation”.

Her comments come as WiseTech shares, which fell to a low of $97.90 per share on October 24, have since bounced back by about 43 per cent and recovered all their losses.

The stock hit a record intraday high on Tuesday of $140.79, closing up 2.86 per cent at $139.51.

The previous record closing high of $139.01 was reached on October 1.

The ASA wants a rejection of the remuneration report at the meeting and has recommended its members vote against plans to grant equity incentives for WiseTech director and founder Maree Isaacs.

Ms Waterhouse said shareholders wanted to hear more from management about their plans for the company in light of the changes, and the appointment of chief financial officer Andrew Cartledge as interim chief executive.

“Shareholders generally would like to see that the company continues to perform well and have got a good management team, leadership and good succession planning in place,” she said.

She said the ASA was concerned that the remuneration structure for the CEO and the proposed new equity incentive for Ms Isaacs were all short term.

Shareholders are this week expected to hear a status report on a review being prepared for the board by law firms Herbert Smith Freehills and Seyfarth Shaw LLP on issues raised in the media about Mr White’s personal affairs.

Proxy firm ISS is supporting the board, recommending that shareholders support all the recommendations to be put to the meeting on Friday, including the remuneration report and the proposal to grant share rights to director Maree Isaacs.

But ISS said there were “concerns” about the “governance, accountability and oversight failures which have publicly come to light through media reports”.

It said it was “of material concern” that the board had failed to ensure the reporting of the remuneration of chief growth officer Gail Williamson in the company’s annual report for 2018 and 2019.

Both the ASA and ISS recommend the election of directors Lisa Brock and Fiona Pak-Poy.

Bell Potter securities analyst Richard Coppleson, said on Tuesday that he believed the “worst” of the company’s share price “has now been seen”.

He said he believed the share price would “gyrate” around current levels for “a few more weeks and months until the market feels more comfortable”.

“On a one to two-year view, we will look back at this (time) as being a great buying opportunity for those who took it,” he said.

The share price had recovered on the back of expectations that directors could make an upgrade in their profit guidance at the meeting, Mr Coppleson said.

He said the company’s investor day in early December was “likely to be positive given the insights this may provide, particularly around the growth potential of three new products”.