Australian logistics software maker WiseTech Global announced the appointment of former CEO Richard White as its executive chairman on Wednesday amidst tensions within the board and among investors over the role of the billionaire founder. The company is facing challenges including media scrutiny of misconduct, corporate governance issues, and a decline in stock value.
Founded by White in 1994, WiseTech has experienced fluctuations in its stock price in recent months, dropping approximately 14% since October when concerns related to White were under review. Following media attention on White's personal life, he initially stepped down in late October to take on a consulting position.
Despite the controversies, WiseTech's shares were trading 2.5% higher at A$96.91 per share by 0306 GMT and had surged as much as 8.4% during the day, marking the largest intraday increase since October 25, 2024.
Richard Dammery, the current chairman, and three other directors are planning to resign due to irreconcilable differences regarding White's position, prompting White's appointment as executive chairman to lead the succession planning process, including the search for a permanent CEO, alongside the nomination committee.
Andrew Cartledge, the former CFO, is currently serving as the acting CEO. Additionally, WiseTech reported a 34% increase in underlying net profit after tax to $112.1 million in the first half of fiscal 2025, attributed to strong growth in its flagship software CargoWise.
[Note: The currency exchange rate was included at the end for reference purposes.]