Richard White to remain WiseTech kingpin as shares soar: analysts

Richard White’s ‘demotion’ will not stop him wielding strong influence over company strategy, analysts say.

Richard White will retain strong influence over WiseTech’s strategy despite being “demoted” from the company he founded 30 years ago after facing accusations of bullying and exchanging business advice for sex, analysts say.

White, 69, stepped down from WiseTech’s board and as its chief executive on Thursday after battling a series of startling allegations this month, which although related to his personal life had attracted the attention of the corporate regulator and sent the company’s share plunging.

WiseTech shares had traded as high as $139.02 before spiralling down to $99.37 on Thursday – the first time it had fallen below $100 since early August.

But on Friday morning, WiseTech shares rebounded 20 per cent to $121.33, as investors lapped up the news of Mr White stepping aside.

“We do think the board and Richard White have come to a solution whereby governance and strategy have been effectively separated,” Citi Analyst Siraj Ahmed said in a note to investors.

Mr White will take a “short period of leave”, before returning to a consulting role in which he will be paid $1m a year – the same salary he was paid as chief executive. He will also step down as a director of the Tech Council of Australia to allow him to “focus” on his new consulting role at WiseTech.

WiseTech's Richard White refused to answer questions from The Australian, while an employee attempted to act like a human shield. Picture: Liam Mendes / The Australian

Mr Ahmed said the leadership transition should not change WiseTech’s near-term earnings outlook, despite a potential “negative” share price reaction. “We upgrade to buy with a new target price of $124.50 – down 10 per cent as we moderate our long-term growth forecasts.

Goldman Sachs analyst Kane Hannan also eyed a buying opportunity for the logistics software giant, raising his recommendation from neutral, with a price target of $138, up 39 per cent on WiseTech’s last closing price.

RBC Capital Markets analyst Garry Sherriff said Mr White stepping down as chief executive and as a director was a “positive development”, but expected him to remain a key player at the company.

“We believe that the underlying growth drivers of the business remain intact and relieving White from his managerial responsibilities to focus on product development is a positive step forward in addressing governance issues without outright dismissal of WiseTech’s visionary founder,” Mr Sherriff said in a note to investors.

Morningstar analyst Roy Van Keulen also said it was positive development but lowered his fair value estimate to $105 per share on what he saw as Mr White’s “demotion”.

“Although we consider the new role to be a demotion and a strong signal from the board, we expect White will be able to continue driving the CargoWise product vision and strategy,” Mr Van Keulen says in a note to clients.

“Given our assessment of WiseTech as a product-led company, we consider White’s continued involvement in this area of the business to be a positive outcome for shareholders.”

Mr White had tried to bankrupt Ms Rogan over a $91,000 sum she spent on luxury furniture at a Sydney mansion he allegedly bought for her in 2022, before their affair was discovered by his now wife, Zena Nasser.

The allegations prompted a second woman, psychologist Jenna Riches, to come forward, accusing him of allegedly offering business advice in exchange for sex. It was also revealed he bought a house for another businesswoman he was allegedly in a relationship with, Marcia Kensell, in Sydney’s Lane Cove in 2018. A falling-out between the pair led to her taking legal action, but it’s understood they have now settled confidentially.

Despite saying that he had been speaking with WiseTech chair Richard Dammery “for many months” about a CEO succession and moving to another role at the company, WiseTech appeared not prepared for Mr White’s resignation.

It tapped chief financial officer Andrew Cartledge – who had planned to retire at the end of next year – as its interim chief executive. “Mr Cartledge has confirmed to the board that he is available to stay on beyond his planned retirement at the end of calendar 2025, as needed by the company,” the board said in a statement to the ASX.

“Mr Cartledge has also indicated to the Board that his retirement plans remain otherwise unchanged.”