WiseTech Global founder Richard White steps down as CEO – Update

By Stuart Condie

SYDNEY — Richard White of WiseTech Global will immediately step down as CEO of the logistics software company he founded three decades ago, following allegations of inappropriate behavior.

The Australian-listed company, which counts more than half of the world’s 25 largest freight forwarders as customers, said in a market filing on Thursday that White will also step down as director. He will become a full-time consultant at WiseTech with a ten-year contract.

WiseTech said Chief Financial Officer Andrew Cartledge will become interim CEO. Cartledge was scheduled to retire at the end of 2025, but is willing to delay his departure while WiseTech finds a permanent successor to White.

“This new role will allow me to focus on product and business growth to create even greater value for shareholders and customers over the long term,” White said in the filing.

WiseTech said White proposed his departure to the board, which agreed.

The company said it has hired law firms Herbert Smith Freehills and Seyfarth Shaw to assist with an internal investigation into what it calls issues raised in Australian newspaper reports about White.

Australian newspapers claimed this month that White behaved inappropriately towards women and that the company’s board did not have sufficient oversight. WiseTech first confirmed the reports to investors on Monday.

“It has been a challenging time for me personally, my family and close friends, and for the business I have built and truly love,” White said in the market filing. He could not be reached for further comment.

“By proposing this role change, Richard has put the company and its shareholders first,” said Chairman Richard Dammery.

Shares of WiseTech are down 19% so far this week, wiping out more than AU$8 billion, equivalent to about US$5.5 billion, from the company’s market capitalization.

White’s role change, which will be completed after he takes a short leave of absence, is positive for WiseTech, according to RBC Capital Markets analyst Gary Sherriff.

“Relieving White of his management responsibilities to focus on product development is a positive step forward in addressing governance issues without outright dismissal,” Sherriff said.

White said he and Dammery had been discussing the CEO succession process for months. The company is already looking for a new CFO after announcing in August that Cartledge plans to retire at the end of next year.

Although Cartledge is willing to stay on beyond December, he still plans to leave, WiseTech said.

Founded in 1994, WiseTech provides software that helps freight companies manage their shipments and handle complex customs requirements. The company recently expanded into landside logistics and reported annual revenue rose 28% to A$1.04 billion in its most recent set of results.

Write to Stuart Condie at [email protected]

(END) Dow Jones Newswires

October 24, 2024 03:49 ET (07:49 GMT)

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