Shareholders want clarity on WiseTech succession planning

WiseTech founder Richard White might have settled a legal case with one of his former lovers but investors are still pushing for greater clarity on the tech firm’s succession planning.

WiseTech CEO Richard White has settled a legal case with former lover Linda Rogan.

The Australian Shareholders Association will be pressing WiseTech chair Richard Dammery for more detail on the succession planning at the company when they meet this week.

ASA chief executive Rachel Waterhouse said the issue of succession planning was important for every company, but there were particular issues facing companies which were led by their founder.

“Succession planning can be more challenging in a founder-led company compared to one with a long history of successive CEOs,” she told The Australian.

“It is an important topic that boards need to prioritise on their agendas, as it ensures continuity and provides flexibility for CEOs to take breaks and manage personal life events, such as injury, illness, or loss, without disrupting the business.”

A spokeswoman for Aware Super, which has 1.18 per cent of the company, said the fund was engaging with the WiseTech board over the situation regarding chief executive Richard White, who founded the company in 1994 and is a 34 per cent shareholder.

She said the fund “actively” monitored and engaged with companies it invested in.

“In respect to WiseTech, we are pleased to see the board is acting to undertake a review and will continue to engage with them during this process,” she said.

WiseTech chair Richard Dammery. Picture: Hollie Adams/The Australian

In an interview with The Australian this year, Mr White said the company “wouldn’t even blink” if he stepped away from the business.

“Even if I was to stop work immediately and just do nothing, the company wouldn’t even blink,” he told The Australian’s Rich List editor, John Stensholt.

“Maybe the fun stuff and the vision would eventually fade, but that’s something which is easily replaceable.

“There’s lots of talented, intelligent people around.”

But Mr White is regarded as playing a key role in WiseTech, with his strategy and vision important to shareholders.

Ms Waterhouse said it was “encouraging” to see the WiseTech board was addressing “the recent media coverage concerning … Richard White”.

“By actively reviewing the issues raised, seeking external advice, and gathering additional information, the board demonstrates a commitment to transparency,” she said.

“This approach is essential to maintaining shareholder confidence and fulfilling their continuous disclosure obligations.

“As a founder-led company, White brings valuable commitment and vested interest to WiseTech’s success. However, all leaders must uphold high standards in strategy, performance, and maintaining a professional work environment.”

Ms Waterhouse said it “may be appropriate” for Mr White to take a temporary break from the company if the claims against him began to affect his ability to perform his duties as chief executive, while the board further investigated the issue. The ASA says all companies should “uphold a code of conduct that covers off the culture and values expected of directors, executives, and employees alike”.

“All CEOs should play a crucial role in driving strategy, performance, and company culture while ensuring a safe and professional environment for staff.”

She said the role of a chief executive was “all-encompassing, often requiring a 24/7 commitment”.

“Being a CEO means more than just managing day-to-day operations; it involves embodying the company’s values at all times, especially in public.

“The responsibilities extend beyond regular business hours –if the company needs them at 3am, they must be ready to respond. This level of dedication is essential, as the CEO’s conduct and availability directly influence the company’s reputation and overall leadership integrity.

“Reputation, confidence and trust are essential for maintaining investor support.

“Allegations can still affect a company’s reputation and share price, raising questions about leadership integrity.”

The ASA is criticising the move by the company to hold a virtual-only annual meeting on November 22.

“It is disappointing that WiseTech does not offer a hybrid AGM format, which would enable shareholders to participate both in-person and online,” Ms Waterhouse said. “Shareholder meetings should be accessible to all by providing hybrid options, allowing more voices to be heard and recognised. Relying solely on virtual meetings fails to meet these standards.”

Other institutional shareholders in WiseTech including AustralianSuper, the Australian Retirement Trust, and Rest would not comment on the situation at WiseTech when contacted on Tuesday.

Mr White on Tuesday abandoned his legal fight with Sydney beauty entrepreneur Linda Rogan bringing an end to a three week saga that has cost the WiseTech founder billions of dollars as the firm’s share price plunged more than 20 per cent.

Originally published as Shareholders want clarity on WiseTech succession planning