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Highlights:
- WiseTech shares rise sharply after leadership changes.
- Richard White steps down but remains involved as a consultant.
- Analysts show positive outlook despite recent developments.
WiseTech (ASX:WTC) shares jumped significantly, climbing as much as 22% to reach $121.33 after founder and CEO Richard White announced his departure from the board and CEO role. This comes after allegations of misconduct surfaced, which included accusations of bullying and inappropriate business dealings. Despite stepping down, White will still maintain a strong influence over the company's future, transitioning into a consulting role while receiving the same annual salary of $1 million.
White, who founded WiseTech 30 years ago, will take a brief leave before returning in this advisory capacity. The company also announced that White will step down as a director of the Tech Council of Australia to concentrate on his new responsibilities.
In the interim, WiseTech’s Chief Financial Officer, Andrew Cartledge, has been appointed as acting CEO. Cartledge had initially planned to retire by the end of 2025, but he has now extended his tenure to provide stability during this period of transition.
WiseTech's share prices had been volatile, dropping as low as $99.37 last week after the misconduct allegations were made public. This marked the first time the company’s stock had dipped below $100 since August. Prior to the scandal, WiseTech’s shares were trading at over $139 earlier in the month.
The controversy surrounding White involves several accusations, including his alleged attempt to bankrupt wellness entrepreneur Linda Rogan over a $91,000 debt related to luxury furniture. Additionally, psychologist Jenna Riches claimed White had offered business advice in exchange for personal favors.
Despite these developments, analysts have remained optimistic about WiseTech’s outlook. Some have pointed to the company's solid product strategy and White’s continued involvement as factors that could stabilize the company’s future. According to reports, several analysts have reiterated their belief in the long-term growth potential of the logistics software giant.
The leadership change is viewed as a step forward in addressing governance issues at WiseTech, while ensuring the company’s vision and strategy remain intact.
