Richard White resigns as chairman of WiseTech

WiseTech Global has announced the resignation of Richard White as executive chairman after personal controversy created “unnecessary distraction”, though he remains on the board. Â

Today, the Australian billionaire co-founder will be replaced as chair by Raelene Murphy, an independent director who joined the logistics software provider’s board at the start of the year.Â

Mr White claimed this was due to recent media reports of allegations of human trafficking that he had denied “strenuously and unequivocally”, distracting from the strength of the business.Â

“Recent personal media attention is creating an unnecessary distraction from the strength of WiseTech’s business. At this time, the senior management team, Zubin (Appoo) and I, should be singularly focused on the execution of the company’s growth strategy,” he said.Â

“Further, I am conscious that personal attacks on me in the media that are unconnected to the performance of the company nevertheless have the potential to encourage short-selling activity,” he added.Â

One industry source told The Loadstar Mr White’s departure from the chairman role “doesn’t go far enough, as he’s still got other titles”. Â

“It’s meaningful but I’m not sure it really matters”.Â

Indeed, Mr White will remain at Wisetech as executive director and continue as chief innovation officer.

But the resignation has been welcomed by investors, however, with the AXS-listed company’s shares spiking in early morning trading and currently at $37.37.Â

Jackson Lee, an RBC Capital Markets analyst, said Mr White’s move was “another step in the right direction”, but investors would want proof of improved governance before buying back in.Â

“The market will likely want to see ongoing evidence that the refreshed board, CEO, and chief innovation officer operate independently,” he said.Â

The incoming chair, Ms Murphy, said her personal experience of working with Mr White had been “totally at odds with media reports”.Â

“I have found him to be an incredibly hardworking, focused, and committed founder who has built a leading global technology business with enormous potential to continue to grow stronger and thrive,” she said. Â

Meanwhile, forwarders are reviewing – and seeking to mitigate – their dependence on Wisetech’s Cargowise platform. Â

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