Richard White quits WiseTech with ‘immediate effect’

The scandal-hit billionaire stated ‘I’m not leaving’ as he dodged journalists while exiting company HQ, after stepping down from his CEO post and into a $1m per year consultancy role.

Richard White will step down from WiseTech immediately.

Richard White will stand down as a director and chief executive of WiseTech with “immediate effect” and at his own request, following a string of sensational allegations about his personal life.

In a statement to the ASX, WiseTech’s board said it agreed to Mr White’s request to leave the company that became a $33.2bn logistics software giant - on the same day it celebrated its 30th anniversary.

In the past five days WiseTech’s shares had dived more than 20 per cent, following allegations about Mr White’s personal life, which involved him having affairs with women and buying homes for some of them. Its shares plunged 6.3 per cent on Thursday.

“It has been a challenging time for me personally, my family and close friends, and for the company that I have built and truly love.

“I want to assure all those who have supported WiseTech, as customers, colleagues, and shareholders, that I remain absolutely committed to seeing this incredible organisation continue to thrive and grow in the coming years,” Mr White said.

Mr White had been facing pressure from investors, with analysts warning the allegations could delay new customers signing up to WiseTech’s Cargowise platform and sparking a succession drama at the company.

Mr White, when approached by journalists from The Australian, declined to comment on his departure, only telling journalists “I’m not leaving” and “I’m not talking” before swiftly exiting the building in a blue Tesla alone.

Chief financial officer Andrew Cartledge - who had planned to retire at the end of next year - will act as interim chief executive.

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.

“The chair of WiseTech Richard Dammery and I have been discussing the evolution of the company and succession of the CEO role for many months. As WiseTech is a product led innovator, it follows that directing my passion, energy, and motivation, to creation of breakthrough product developments that solve the deep problems found in the complex world of global logistics is my highest and best use.

“I strongly believe that now is the right time for me to make this transition and the Board agrees. This new role will allow me to focus on product and business growth, to create even greater value for shareholders and customers over the long term.”

Mr Dammery said Mr White had “put the company and its shareholders first”.

“Richard has consistently demonstrated a rare combination of foresight, intellect, capability and ambition. All great entrepreneurs achieve what others consider to be impossible, and Richard has most certainly done this at WiseTech,” Mr Dammery said.

The board said Mr White will “participate” at its annual general meeting on November 22 and its investor Day on December 3.

His resignation as chief executive and a director came on the same day WiseTech celebrated its 30th anniversary, which was understood to be a low-key afternoon tea, with Mr White expected to attend the gathering with staff at its headquarters in Alexandria, Sydney.

RBC Capital Markets analyst Garry Sherriff said Mr White stepping down as chief executive and as a director was a “positive development”, citing media coverage on the allegations and “potential governance breaches”.

“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.

It came as Australia’s peak tech lobby told its members that its assessing whether Mr White should stay on its board.

Mr White stood down from public duties as part of his role as a Tech Council of Australia director last week. He was appointed to the TCA’s board in June which also includes Tesla chair Robyn Denholm, Canva co-founder Cliff Obrecht, Atlassian Co-founder Scott Farquhar.

In a note sent to members on Thursday, the TCA confirmed Mr White would continue to be absent from public appearance to “ensure that there are no distractions”.

“The board continues to assess and monitor the matter closely and is following its governance processes,” the TCA in its note before directing queries to its chief executive Damian Kassabgi, account manager or media liaison.

The TCA initially said Mr White had made the decision to stand down from public duties “while a personal matter is being resolved in court”. Mr White and former lover Linda Rogan settled their federal court dispute on Tuesday, but the legal fight sparked other allegations.

The TCA had previously described Mr White as a “renowned leader in the tech industry”, with an “impressive track record of delivering digital transformation across various sectors for more than 30 years”.

“As the founder and CEO of WiseTech Global, Mr White has played a pivotal role in nurturing innovation and supporting tech ecosystems both locally and globally,” the TCA said when he was appointed to the board.

“His personal passion for advancing STEM education saw WiseTech Global pledge 1 per cent of its annual pre-tax profit to enable tech education initiatives for school-age children in addition to launching the innovative WiseTech Earn & Learn program offering Year 12 school leavers a full-time, paid job as a software developer, while supporting them through a four-year university degree in computer science.”

Mr White joined the board with Eglantine Etiemble, PEXA Group’s chief technology officer, who was also a new appointee in June.

Ms Denholm said she was “thrilled” to have their expertise. “Their experience and leadership will be instrumental in guiding our strategic direction and enhancing our impact on the technology sector. We look forward to both of their contributions as we continue to advocate for policies and initiatives that support the growth and success of Australian technology companies,” Ms Denholm said.

Part of the challenge the TCA faces is the legality of a director being able to step aside from their fiduciary duties without resigning. The Australian Institute of Public Directors said it was a difficult question to answer and referred questions to a law firm dealing with such matters.

Former Victorian innovation minister Philip Dalidakis – now managing partner at corporate advisory firm Orizontas – said Mr White stepping down from public duties at the TCA was a “first step”.

“But it may require a decision to be taken about whether he resigns from the board with a clear indication that there is a pathway to being brought back on to the board once the issue is resolved,” Mr Dalidakis told The Australian.

“The Tech Council of Australia has a responsibility, obviously, to its members and the broader industry and so the decisions that they take, as difficult as they may be in relation to individuals, are secondary in relation to their responsibility to the people and the industry that they represent,”

The TCA has 132 members, including Airwallex, AWS, Canva, Google and Microsoft.

Originally published as Richard White quits WiseTech with ‘immediate effect’