Australia's WiseTech sinks after directors step down over differing views on founder's role

February 23, 2025 03:54 PM PST | By EODHD

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Australia's WiseTech sinks after directors step down over differing views on founder's role — Image source: Kalkine Media

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(Reuters) - Australian software maker WiseTech Global said on Monday four of its non-executive directors have decided to step aside owing to differing views around the role of the company's billionaire founder and former CEO Richard White, sending its shares tumbling 18%. Lisa Brock, Richard Dammery, Michael Malone and Fiona Pak-Poy are set to resign after the company's half-year results are released on Wednesday. WiseTech said in October that White would step down from his role as CEO after media reports of allegations about his personal life, including payments to an alleged former lover. The company had appointed finance chief Andrew Cartledge to serve as the interim CEO during the transition. The 69-year-old White returned to WiseTech after a 30-day break as a consultant on a minimum 10-year contract, under the newly created title of "founder and founding CEO".

Later, WiseTech started an external governance review. The initial findings largely cleared White of wrongdoing, though it acknowledged that his management style might be perceived by some employees as intimidating. WiseTech this month said it received two confidential complaints - from an employee and a supplier - making allegations against White, without giving details. Reuters was not able to reach White for comment. "While it is positive that Richard White is still with the company, the departure of four independent directors raises questions on what the new allegations could be and what the differing views were in terms of White's new role," Citi analysts said in a note.

Shares of the company dropped up to 18.6% to A$99.1 in early trading - the worst performer in the ASX 200 benchmark index. WiseTech appointed Mike Gregg as a director on Monday and said more directors will be appointed in due course. It added that it expects its full-year revenue to be at the bottom end of its forecast range of A$1.2 billion ($763.56 million) to A$1.3 billion, due to further delays in the rollout of three of its products this year. It, however, expects EBITDA margin rate to be towards the top of the previously announced range, driven by stronger results from efficiency programme. ($1 = 1.5716 Australian dollars) (Reporting by Himanshi Akhand in Bengaluru; Editing by Will Dunham and Stephen Coates) View Comments

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