WiseTech CEO Richard White Steps Down Amidst Scandal

WiseTech Global Ltd.'s billionaire founder and Chief Executive Officer, Richard White, has stepped down following a series of damaging allegations regarding his relationships with several women. White will take a short period of leave before transitioning into a new role, the Sydney-based company announced in a statement on Thursday.

The decision comes after a flurry of media reports wiped more than A$7 billion ($4.6 billion) from the software provider's market value. The stock fell 6% in Thursday trading. The scandal erupted earlier when White attempted to push wellness entrepreneur Linda Rogan, with whom he is alleged to have had a sexual relationship, into bankruptcy. Rogan had alleged White expected her to have sex with him in exchange for an investment in her business. The case was later settled out of court.

Since then, a string of other allegations have emerged, turning a relatively little-known Australian tech company into the country's latest corporate scandal. The Australian Financial Review, The Sydney Morning Herald, and The Age have reported that White had a sexual relationship with a woman who later made a series of damaging claims about the billionaire in late 2020 that included allegations he engaged in inappropriate behavior. White paid the woman millions of dollars to settle the matter, according to the reports.

The publications also reported that White had a lengthy relationship with a WiseTech employee and gave her a luxury waterfront house in Melbourne worth A$7 million. The crisis deepened further when the Australian Financial Review reported that a former WiseTech director had accused White of intimidation and bullying. The ex-director also claimed there had been a corporate governance failure at the company.

WiseTech, founded by White in 1994 with Maree Isaacs, has grown into a key provider of software that coordinates logistics and shipping across the world. The company was valued at A$1 billion when it listed on the Australian Securities Exchange in 2016 and today employs 3,300 people across 37 countries. It claims the majority of the world's biggest global logistics providers and freight forwarders among its clients, including DHL, China's Sinotrans, Japan's Nippon Express, and APL Logistics.

With WiseTech now stumbling, Australia is losing its reputation as a tightly-regulated market with strict governance standards. Accusations of operational or ethical failures have also hit Australia's two dominant supermarkets, one of the major banks, the largest insurer, the biggest listed media company, and Sydney's main casino.

White's departure is a significant blow to WiseTech, which has been grappling with the fallout from the allegations. The company's board has come under pressure to take action, with investors calling for a thorough investigation and appropriate response. The Australian Council of Superannuation Investors, which represents some of the country's largest pension funds, has described the matter as a "major concern" for investors.

As WiseTech navigates this challenging period, it will be crucial for the company to address the allegations and restore its reputation. The appointment of a new CEO and the implementation of robust governance measures will be key to rebuilding investor confidence and ensuring the long-term success of the company.