Billionaire Richard White resigns as CEO, effective immediately
Australian billionaire Richard White has stepped down as CEO of WiseTech Global, effective immediately, following a turbulent period marked by legal issues and falling stock prices.
WiseTech, Australia’s largest ASX-listed tech company with a market capitalisation of $35 billion, saw a sharp decline in its share price over the past week after reports surfaced of White’s relationships with female employees and individuals outside the company.
White’s resignation comes in the wake of a settled civil court case earlier this week, where he was accused of reneging on a business deal with a woman with whom he had a sexual relationship. The fallout from the legal case and the related media coverage has caused WiseTech’s shares to plummet more than 25% over the past week, wiping out $4.6 billion of the company’s market value.
In an effort to mitigate investor concerns, WiseTech's chair, Richard Dammery, had been holding meetings with stakeholders before announcing White’s decision to step down. Despite the challenges, White expressed his enduring commitment to the company he co-founded nearly 30 years ago.
“It has been a challenging time for me personally, my family and close friends, and for the company that I have built and truly love,” White said in a statement. “I want to assure all those who have supported WiseTech — customers, colleagues, and shareholders — that I remain absolutely committed to seeing this incredible organisation continue to thrive and grow in the coming years.”
White's resignation, though abrupt, is said to have been part of ongoing discussions between him and Dammery about the company’s evolution and the CEO succession plan. White, who still owns a 37.5% stake in the company, acknowledged that now was the right time to step down, a move supported by the board.
In White’s place, current Chief Financial Officer Andrew Cartledge will step in as interim CEO. Cartledge will oversee the company’s operations while the board completes its internal review into the allegations and media scrutiny surrounding White. The review, aided by law firms Herbert Smith Freehills and Seyfarth Shaw, remains ongoing.
Meanwhile, White will take a short period of leave before transitioning to a long-term consultancy role focused on product and business development. His compensation package remains unchanged at $1 million per year.
Dammery praised White’s decision, saying, “By proposing this change in role, Richard has put the company and its shareholders first, and he has taken the natural next step in evolving his role as founder to best add value to WiseTech for the long-term.”
The company’s flagship product, a cloud-based logistics platform used by global shippers like DHL, remains a key driver of its success. However, the recent controversies and financial setbacks have placed WiseTech under increased scrutiny from investors and industry observers. Shares in the company fell by another 6.3% during trade on Thursday, closing at $99.37.
Despite the turmoil, Dammery reassured investors that the board was fully engaged and focused on ensuring WiseTech’s continued success. He emphasised that the inquiries into the specific issues raised in the media would be handled thoroughly, and the board would remain transparent throughout the review process.
Founded in 1994 by White, WiseTech Global grew to become a leader in the technology sector, with its logistics software revolutionising the way large shipping companies operate. White's decision to step down marks the end of an era for the company, but with his continued involvement in a consultancy role, it is clear that his influence at WiseTech will persist.
For now, the company's future rests on its ability to regain investor confidence and navigate the fallout from White’s departure, while keeping its focus on innovation and growth in the global logistics industry.