WiseTech Global, a logistics software company based in New South Wales, Australia, saw its shares drop 18.6% after four non-executive directors resigned over disagreements regarding the role of founder and former CEO Richard White. White, who stepped down amid personal allegations, returned as a consultant under a 10-year contract, sparking governance concerns. The company also reported lower revenue expectations due to product rollout delays, though its EBITDA margin remains strong. Investor concerns over leadership stability and governance challenges have intensified as WiseTech prepares to release its financial results.
WiseTech Global, a leading logistics software company based in New South Wales, faced a major stock plunge after four non-executive directors announced their resignations due to disagreements over the role of billionaire founder and former CEO Richard White. The company’s shares dropped 18.6% to AUD 99.1, making it the worst performer on the ASX 200 benchmark index.
Director Resignations Shake WiseTech
WiseTech Global, known for its cloud-based logistics solutions used worldwide, disclosed that directors Lisa Brock, Richard Dammery, Michael Malone, and Fiona Pak-Poy would step down after the company’s half-year financial results on February 28. The departures were attributed to differing views regarding White’s continued involvement in the company after stepping down as CEO in October 2024.
White initially left his role following media reports about personal allegations, including financial transactions involving an alleged former partner. Despite this, he returned after a 30-day break as a consultant on a minimum 10-year contract, under the new title of “Founder and Founding CEO.”
WiseTech launched an external governance review, which mostly cleared White of wrongdoing but noted that some employees found his leadership style intimidating. Earlier this month, the company received two confidential complaints—one from an employee and another from a supplier—raising new allegations against White. The details of these allegations remain undisclosed.
Investor Concerns and Market Reaction
The resignations raised concerns among investors about the company’s corporate governance. Citi analysts noted that while White’s continued association with WiseTech may reassure some, the sudden departure of four independent directors has cast doubt on the company’s leadership structure.
In response, WiseTech appointed Mike Gregg as a new director and assured stakeholders that more board members would be appointed soon.
Revenue and Profitability Outlook
Aside from governance challenges, WiseTech also faces operational setbacks. The company announced that its full-year revenue is expected to fall at the lower end of its forecast range of AUD 1.2 billion ($763.56 million) to AUD 1.3 billion, due to delays in launching three of its new products. However, WiseTech expects its EBITDA margin to remain strong, benefiting from efficiency initiatives.
What Lies Ahead for WiseTech?
The coming months will be critical for WiseTech as it seeks to stabilize leadership, address governance concerns, and reassure investors. With the ASX-listed firm under intense scrutiny, market watchers will closely monitor its leadership appointments and financial performance in the upcoming earnings report.
