ASX200 Tech Giant WiseTech Faces Governance Concerns from $91B Super Fund

May 09, 2025 01:23 PM AEST | By Team Kalkine Media

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ASX200 Tech Giant WiseTech Faces Governance Concerns from $91B Super Fund — Image source: shutterstock

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Highlights

WiseTech (WTC) flagged by a major Australian super fund over governance issues

Concerns raised around leadership structure and board independence

Growing scrutiny highlights need for strong governance in ASX200 tech firms

A major player in the Australian investment landscape, HESTA—a $91 billion superannuation fund—has publicly raised concerns over governance at WiseTech Global (ASX:WTC), placing the logistics software provider on its formal watchlist. The move highlights increasing investor focus on board independence and corporate governance standards across ASX200 companies.

HESTA pointed to a number of ongoing issues surrounding WiseTech’s internal structures, including the role of Executive Chair Richard White. The fund expressed concerns about the concentration of power at the top and a perceived lack of independent oversight on the company's board.

In a statement, HESTA’s CEO Debby Blakey said:
“Our concerns relate to the conduct and actions of the executive chair, the lack of independence of the WiseTech board, and uncertainty around succession planning.”

The fund believes WiseTech has a "critical and immediate opportunity" to improve governance by appointing more independent directors and increasing transparency in leadership transitions.

WiseTech is known for its flagship product CargoWise, which is used globally by freight forwarders and logistics providers. Its market capitalisation and inclusion in the ASX200 make it a prominent name in Australian tech circles. However, as institutional investors increasingly weigh environmental, social, and governance (ESG) factors, concerns like these could affect market sentiment.

This scrutiny also brings to light the broader importance of governance in Australia's top companies, especially those within the ASX300 index. For long-term-oriented investors and super funds with exposure to ASX300 firms, board independence is a growing consideration in evaluating risk.

For those tracking income-generating opportunities, it’s also worth noting that WiseTech is not typically counted among the traditional ASX dividend stocks, given its growth-oriented reinvestment approach. Still, governance factors can impact capital allocation decisions that ripple through share performance and strategy outlooks.

As the situation evolves, market watchers may keep a close eye on how WiseTech responds to these calls for improved governance and what steps it may take to align with investor expectations.

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