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

The company has been heavily criticised for its failure to implement a succession plan. Its share price has tumbled as investors were left in the dark over who would assume control of the $31.6bn company.

On Tuesday investors carved a further $900m off WiseTech’s market value, with shares sliding 2.8 per cent to $94.55.

Over two days, $9.1bn has been wiped from the company, while Mr White, the company’s largest shareholder with a 36.7 per cent stake, has also widened his paper losses to $3.3bn after more than half his board walked out the door.

WiseTech will deliver its half-year results on Wednesday but the company has already lowered the bar, forewarning that revenue would be at the lower end of guidance – forecast to be $1.2bn to $1.3bn in fiscal 2025.

Its guidance represents revenue growth of 15 to 25 per cent versus fiscal 2024 but is lower than its previous guidance of $1.3bn to $1.35bn.

WiseTech’s governance was clearly a cause for concern for investors, said Australian Shareholders Association chief executive Rachel Waterhouse.

She said founder-led companies often ran into similar issues.

“We were already calling out that we were concerned about the succession plan last year before Richard White stepped into this other role,” Ms Waterhouse said, adding that the ASA understood Mr White was meant to be applying “his best strengths and qualities” to product development in his new role.

“Now, the succession is even worse because they need, and I assume they’re still looking for, a new CEO, and now they also need a chair and capable board members,” she said.

WiseTech declined to say whether Mr White, who turns 70 in April, was plotting to return the chief executive role he abruptly resigned from in October last year or whether the company was still searching for a new leader.

That resignation came after a series of sensational allegations – including that he exchanged business advice for sex. He moved into the consulting role weeks later, keeping the same salary he received while CEO.

In December, with a new title – founder and founding chief executive – he promised investors in December he would not “override” management.

But on Monday, four directors abruptly quit the company, citing “intractable differences in the board and differing views” on Mr White’s role.

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

Citi analyst Siraj Ahmed said the lack of independent oversight and governance at the tech giant was a concern, along with whether it had 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, as the best way forward, as it also addresses succession risks.”

Swinburne University of Technology corporate governance specialist Helen Bird said it was obvious that WiseTech lacked “mature” governance.

“It’s a company that’s done remarkably well in a short period of time due to doubt the abilities and magic that is Mr White but he has not put in place a successful governance mechanism that gives that pushback,” she said.

“That has allowed the situation to develop where his personal interest and his work-related interests are starting to get very bogged down.”

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

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 whether a company review being conducted by Seyfarth Shaw and Herbert Smith Freehills would be made public when it was 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 (about) additional director appointments in due course, the question is how many independent directors are expected and by what timeframe this is expected to happen.”

Mr Dammery and directors Lisa Brock, Michael Malone, Fiona Pak-Poy said they would 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 had so far found “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 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.