WiseTech’s Richard White ‘misled’ board on personal relationships with staff member, supplier

An ongoing review into the behaviour of WiseTech founder Richard White found the billionaire failed to be ‘fully transparent’ about his controversial relationships.

Richard White misled the WiseTech board on the nature of relationships with staff and suppliers, an independent review has found.

WiseTech’s board has legitimate governance concerns over the behaviour of its executive chairman Richard White, with an independent review finding he misled the board about his personal relationship with an employee.

The review, which is continuing, prompted the board to conclude a “number of the matters are serious in nature, and that such conduct is not acceptable and must not be repeated”, WiseTech said in a statement on Wednesday.

A board subcommittee, comprising co-founder Maree Isaacs, Charles Gibbon and lead independent director and former 16-year board veteran Michael Gregg, “acknowledges the legitimate governance concerns raised in the board review findings”.

Ms Isaacs, Mr Gibbon and Mr Gregg are among four serving board members, along with Mr White, after four independents walked out in February, citing “intractable differences” over the billionaire’s role.

Wednesday’s update also included preliminary findings regarding two further complaints WiseTech assessed after receiving them in February this year regarding Mr White, an employee and a WiseTech ­supplier.

WiseTech‘s second partial update was drawn from a review undertaken by Herbert Smith Freehills and Seyfarth Shaw.

The company has refused to release the full independent review, a decision that led to the mass exodus of four board directors earlier this year.

The Australian Shareholders’ Association called on the logistics software giant to reconsider its position, warning that “partial disclosures create uncertainty and undermine shareholder trust”.

“The review confirms the CEO failed to disclose a personal relationship with an employee to the board, raising serious governance concerns,” said ASA chief executive Rachel Waterhouse.

“While WiseTech plans to strengthen its code of conduct, cultural and operational reforms are also necessary.”

WiseTech founder and executive chairman Richard White.

On Wednesday, WiseTech shares closed down 2.3 per cent to $82.81, giving it a market value of $27.7bn.

The review found Mr White failed to be “fully transparent and candid” regarding a relationship with a WiseTech staff member referred to as Person A.

He also made “inaccurate and incomplete disclosures concerning the nature and duration of his relationship” and had failed to provide substantial information about the relationship before the independent review gave its first update late last year, it said.

Mr White late last year faced a series of sensational allegations, including that he had exchanged business advice for sex.

Other lines of inquiry, including whether Person A was unlawfully discriminated against due to “gender pay inequality”, whether Person A was required to work excessive or unreasonable hours and whether WiseTech had failed to act soon enough on complaints made by Person A, could not be substantiated. Person A did not participate in the board review.

Mr White had also “made incomplete disclosure concerning the nature and duration of his relationship” with a WiseTech supplier referred to as Person B.

The WiseTech executive chairman was found to have been “misleading about personal ­matter concerning this relationship” and failed to disclose the nature and duration before the review’s previous update.

“Mr White failed to disclose his knowledge of a dispute raised with him by Person B about matters including the supplier arrangement in a timely manner (including, for example, where he was engaged in negotiations with the company concerning the terms and conditions of the Founder & Founding CEO role),” the review said.

After being sidelined as WiseTech’s chief executive, Mr White was given the title Founding CEO. He has since returned to the boardroom and consolidated of power as executive chairman. The company is still looking for a CEO.

Mr White accepted the findings of the review and supported the adoption of a stricter code of conduct, the statement said.

“Mr White has indicated that while those matters were personal in nature, with the benefit of hindsight he would have more (fully) disclosed them to the board and handled the contracting process differently,” WiseTech said.

“Mr White understands the importance of his role in creating and influencing the culture of the business, and the seriousness of his actions.”

Seyfarth said the two complaints received in February would be further investigated. The board also confirmed there is a third matter but said “substantial aspects” of that complaint “fall outside the scope of the board review”.

WiseTech still intends to nominate another independent director as a matter of urgency to comply with the ASX listing rules.