Australian software company WiseTech Global announced on Monday that four of its non-executive directors will step aside due to disagreements regarding the involvement of the company's billionaire founder and former CEO Richard White. This decision caused a sharp 18% drop in its shares.
Lisa Brock, Richard Dammery, Michael Malone, and Fiona Pak-Poy will resign after the release of the company's half-year results on Wednesday.
In October, WiseTech disclosed that White would step down as CEO following reports about his personal life, including alleged payments to a former partner. The company appointed Andrew Cartledge as interim CEO during the transition. White, 69, returned to WiseTech as a consultant with a newly created title "founder and founding CEO" on a minimum 10-year contract.
Subsequently, an external governance review was initiated, resulting in mostly clearing White of misconduct, while noting that his management style could be seen as harsh by certain employees.
Recently, WiseTech disclosed receiving two confidential complaints against White from an employee and a supplier, without specifying details.
Commenting on the situation, Citi analysts raised concerns about the departure of four directors and the new allegations against White, emphasizing the uncertainty surrounding his new role.
Shares of WiseTech plummeted by up to 18.6% during early trading, making it the poorest performer in the ASX 200 benchmark index.
To fill the gap left by the resignations, WiseTech appointed Mike Gregg as a director on Monday and indicated further appointments will follow.
The company anticipates that its full-year revenue will likely be at the lower end of its projected range of A$1.2 billion to A$1.3 billion due to delays in product launches. However, it expects the EBITDA margin rate to be at the higher end of expectations, influenced by improved efficiency.