WiseTech Board Quits as Founder White Wins Power Struggle

WiseTech Global, the logistics software giant, has been rocked by a major shakeup as four of its board members resigned in protest over the ongoing role of founder and former CEO Richard White. The resignations, which include chairman Richard Dammery, Lisa Brock, Fiona Pak-Poy, and Michael Malone, come amidst a power struggle within the company and a poor earnings update. The board members cited "intractable differences" in views around White's role, leading to their decision to step down.

White, who co-founded the company in 1994, has been at the center of a storm of controversy in recent months. In October 2024, he was pressured to resign as CEO following allegations of inappropriate behavior, including unduly using his influence to gain sexual favors, paying for a multimillion-dollar house for an employee he was in a relationship with, and awarding a lucrative contract to a then-lover. He was also accused of "sustained intimidation and bullying" by former director Christine Holman. A legal and accounting review conducted at the company's annual general meeting in November cleared White of any wrongdoing, but new reports emerged earlier this month revealing three more women had come forward with allegations of inappropriate behavior against him.

Despite the controversy, White has continued to work for the company in a consulting capacity, primarily focusing on new product development. However, he has yet to sign a 10-year, $1 million-a-year contract to continue in this role. The company has announced that interim CEO Andrew Cartledge and interim CFO Caroline Pham will present the half-year financial report alongside White on Wednesday, with the new three-person board set to appoint new directors "in due course."

The resignations and ongoing controversy surrounding White's role have raised questions about the company's future direction and performance. WiseTech's share price has plunged by nearly 25 percent on news of the resignations, with the stock dropping from $120 to $90 in just a few days. The company's earnings update, which showed revenue coming in at the lower end of previous guidance due to further delays in the rollout of three announced breakthrough products, has also contributed to the uncertainty.

Investors and analysts have been divided in their assessments of the company's prospects. Some, like RBC Capital Markets, remain bullish on the company's long-term prospects, citing the potential benefits of tariffs on the company's customs and compliance modules. However, others have expressed concerns about the company's near-term sentiment and the uncertainty surrounding its management and product release delays.

As the company moves forward, it will be crucial for the new board and management team to address the ongoing concerns surrounding White's role and the company's future direction. The resignations and controversy have highlighted the importance of strong corporate governance and the need for the company to prioritize the interests of all stakeholders, including employees, customers, and shareholders.

In conclusion, the resignations of four board members at WiseTech Global, amidst a power struggle and poor earnings update, have raised significant questions about the company's future direction and performance. As the company moves forward, it will be essential for the new board and management team to address the ongoing concerns surrounding White's role and the company's future direction, prioritizing the interests of all stakeholders. Investors and analysts remain divided in their assessments of the company's prospects, with some expressing optimism about its long-term potential and others raising concerns about its near-term sentiment and management uncertainty.