Aussie board investigates payments to ex-partner CEO; shares plummet 18%

SYDNEY – Shares of WiseTech Global plunged on Oct. 21 after the tech company’s board of directors said it is investigating media allegations against billionaire co-founder and CEO Richard White of past inappropriate behavior.

The stock fell as much as 18 percent in early trading before paring losses of 11 percent at 11:13 a.m. in Sydney.

According to the Bloomberg Billionaires Index, the move wiped out $1.4 billion ($1.83 billion) from Mr. White to $8.3 billion ($10.87 billion).

Mr White, 70, is WiseTech’s largest shareholder and has led the company since 1994, growing it into a global supply chain powerhouse through a series of acquisitions.

Nine entertainment publications The Australian Financial Review, The Sydney Morning Herald and The Age said on October 21 that Mr White had paid millions of dollars to a former sexual partner to settle allegations from late 2020.

The papers said Mr White had provided a statutory declaration to a subcommittee of the board denying the claims. The papers said they are not suggesting the allegations are true, just that they have been made.

Media stories making various claims about Mr White’s personal relationships with women have circulated in Australia over the past three weeks, but the statement from WiseTech’s board on October 21 and the market’s reaction raise the stakes.

The company’s dominant shareholder – and the board’s governance controls – are now in the corporate spotlight for the first time.

“The board is currently reviewing the full range of matters raised in today’s media reports and is actively seeking further information and seeking external advice,” WiseTech directors said in a statement.

“It is aware of the potential impact on the business and will carefully evaluate all relevant factors in its assessment.”

The share price slump on October 21 saw WiseTech’s market value fall by almost A$5 billion (S$4.4 billion) to A$36 billion (S$31.67 billion).

At the time the allegations were made, there were only two current WiseTech directors on the board, and according to reports, the company held a series of crisis meetings over the weekend.

WiseTech is a major supplier of the software that coordinates shipping around the world. The Australian company claims its customers include the majority of the world’s largest global logistics providers and forwarders, including DHL, China’s Sinotrans, Japan’s Nippon Express and APL Logistics.

The Oct 21 reports also claimed that leaked 2019 communications between WiseTech directors revealed board concerns over Mr White’s decision to appoint a former female director for A$2.7 million (S$2.38 million). pay, double what he earned as CEO, without disclosing this to investors. . BLOOMBERG