WiseTech Global, an Australian logistics software company, experienced a 22% drop in its share price following the resignation of four out of six board members, including Chairman Richard Dammery. The resignations stemmed from irreconcilable differences over the ongoing role of founder and largest shareholder Richard White, who has been at the center of controversies surrounding his leadership and personal conduct.
Key Developments
Board Resignations: Non-executive directors Lisa Brock, Michael Malone, Fiona Pak-Poy, and Chairman Richard Dammery announced they would step down after the release of WiseTech’s half-year financial results on February 26, 2025. The company cited “intractable differences” regarding White’s role as the primary reason for their departure.
Share Price Impact: Following the announcement, WiseTech shares opened nearly 23% lower, trading at $94 before recovering slightly to $98.64 later in the day. This sharp decline reflects investor concerns over governance issues and leadership instability.
Controversies Surrounding Richard White:
- White stepped down as CEO in October 2024 after allegations of inappropriate behavior and personal scandals, including claims of improper relationships with employees and suppliers. While an external review cleared him of legal wrongdoing, his confrontational leadership style and personal controversies have continued to impact WiseTech’s reputation.
- Despite stepping down as CEO, White retained a consulting role with a $1 million annual salary and significant influence over company operations.
Operational Challenges: In addition to governance turmoil, WiseTech has faced delays in rolling out new products, which has impacted revenue forecasts. The company now expects revenue to hit the lower end of its guidance range for FY25 but anticipates its EBITDA margin will remain strong due to efficiency measures.
Future Leadership: WiseTech has announced plans to appoint new directors, starting with Mike Gregg from Shearwater Capital. Interim CEO Andrew Cartledge and interim CFO Caroline Pham will join White in presenting the company’s half-year results on February 26.
Broader Implications
The resignations highlight ongoing tensions between White’s influence as founder and the board’s efforts to address governance concerns. This governance crisis underscores the challenges of balancing founder-led leadership with corporate accountability in publicly traded companies. Investors are likely to watch closely for further developments in leadership appointments and operational performance as WiseTech navigates this turbulent period.