WiseTech shares halted pending White review, new complaints

WiseTech shares have plunged into a trading halt ahead of an update on a review involving its founder and former CEO Richard White after new complaints surfaced about his behaviour.

WiseTech Chief Executive and major shareholder Richard White at the company's Investor Day late last year.

WiseTech shares have plunged into a trading halt ahead of an update on a governance review involving its former chief executive Richard White who resigned last year following allegations he exchanged business advice for sex.

Investors were expecting the $40.7bn company to provide an update on the review when it reports its half-year earnings on Wednesday.

But in a statement to the ASX on Thursday, WiseTech company secretary Katrina Johnson said it needed more time.

“The trading halt is requested to enable the company to be in a position to provide an update on current Board discussions relating to matters of governance,” Ms Johnson said.

The halt is expected to last until Monday – two weeks after the company said it had received two more complaints from an employee and a supplier about Mr White’s behaviour.

“These are being considered in the ongoing board review,” WiseTech said.

It also revealed that Mr White was yet to sign the contract of his new consulting role, which pays $1m a year – the same he received as CEO.

WiseTech chairman Richard Dammery.

The key terms of the 10-year consulting arrangement, either via a consultancy agreement with Mr White’s company, or by amending the terms of his pre-existing employment contract, “are still in the course of being agreed”.

In the meantime, both the company and Mr White “have been operating broadly in accordance with what was announced”. Mr White took only several weeks’ leave before taking on the consulting role.

Chief financial officer Andrew Cartledge is acting CEO while executive recruiter Russell Reynolds ploughs ahead with finding a replacement.

RBC Capital Markets Garry Sherriff took a “negative” view that Mr White was yet to sign his new contract but said earlier this month that WiseTech’s “medium term structural tailwinds remain solid”, and would benefit from US tariffs.

“WiseTech has no permanent CEO in seat at present, with ex-CFO Andrew Cartledge acting as interim CEO, contributing to the uncertainty. Medium term, WiseTech should be a net beneficiary of tariffs which are likely to spur demand for CargoWise, particularly customs and compliance modules,” Mr Sherriff wrote in a note to investors.

WiseTech expects to deliver revenue of $1.2bn to $1.3bn in fiscal 2025, representing revenue growth of 15 to 25 per cent versus fiscal 2024. This compares with the company’s previous guidance of $1.3bn-$1.35bn.

Richard White says he is ‘truly sorry’.

Mr White – who founded the company 30 years ago – before stepping down as chief executive last October after a string of sensational allegations about his personal life emerged.

WiseTech has also engaged law firms Herbert Smith Freehills and Seyfarth Shaw to complete a review of the company, following the allegations involving Mr White.

“The Board Review has progressed, and WiseTech’s Board remains committed to ensuring it takes the appropriate time necessary to conclude it,” the spokeswoman said on Friday.

The law firms have examined allegations, including that Mr White failed to disclose a number of “close personal relationships” in the workplace with the board, had misused WiseTech funds to have plastic surgery in 2019 and host former lover Linda Rogan in New York; and engaged in bullying, harassment and intimidation – an accusation raised by former director Christine Holman.

Last November, chair Richard Dammery said the review had so far found “no evidence” of misconduct and the external lawyers had attributed Mr White’s behaviour to “creative abrasion”.

Not long afterwards, WiseTech co-founder and director Maree Isaacs sold her stake – totalling 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.

Linda Rogan, one of Billionaire Richard White's former mistresses who reached a settlement with him last year. Picture: Richard Dobson

Ms Rogan purchased $90,000 worth of luxury furniture for the property, but claimed it was useless after 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, came forward, telling 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.

In a pre-recorded video message to investors at WiseTech’s annual meeting last year, Mr White said he was “truly sorry”.

“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,” he said.

“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.”

In December, Mr White sold about $442m of his shares in WiseTech.