Billions wiped off WiseTech's books as crisis engulfs CEO
Shares in Australia’s biggest listed technology company, WiseTech Global, plunged by nearly 20 per cent on Monday morning, wiping billions from its valuation, after reporting by The Age, The Sydney Morning Herald and the Australian Financial Review into serious allegations of inappropriate behaviour by its billionaire chief executive Richard White.
A joint investigation by the three mastheads published on Monday morning revealed a woman, who had a sexual relationship with Australia’s 11th richest person, made several claims about him in late 2020, including allegations he had engaged in inappropriate behaviour.
WiseTech’s Richard White.Credit: Dominic Lorrimer
This masthead is not suggesting the allegations against White are true, only that they were made.
Questions from the mastheads triggered a series of crisis meetings at the weekend, and on Monday the company’s share price fell dramatically. WiseTech shares dropped in early trading by nearly 20 per cent, before closing at $104.65, down 14.6 per cent.
The company had nearly $5 billion wiped from its valuation in a matter of hours and posted its worst trading session in more than a year. WiseTech’s major shareholders include AustralianSuper, the Future Fund, REST and Sun Super, as well as White, who continues to sell down his stake.
White, who has amassed a personal fortune of more than $10 billion thanks to WiseTech’s growth, sold 351,038 shares in the company between October 11 and October 17, according to a notice filed with the ASX. It is not suggested White or others were aware of the media investigation at the time of these sales.
The WiseTech board said in a statement on Monday morning that it noted the reporting from the three mastheads about its chief executive.
“The board is currently reviewing the full range of matters raised in today’s media reports and is actively seeking further information and taking external advice,” the statement said.
“The board will continue to meet regularly to consider and monitor the situation, and keep the market updated in line with its continuous disclosure obligations.
“It is conscious of the potential impacts on the company and will carefully evaluate all relevant factors in its assessment.”
Salacious details about Mr White’s private life spilled into the public domain in the past month after the businessman lodged a bankruptcy notice against another former lover, Sydney wellness entrepreneur Linda Rogan. In documents filed with the Federal Court to try to set aside a bankruptcy notice, she alleged Mr White expected her to have sex with him in exchange for an investment in her business.
Linda Rogan is challenging a bankruptcy notice issued by Richard White.Credit: Nick Moir and Oscar Colman
The investigation published on Monday found that White approached numerous female entrepreneurs via text message and social media with offers of professional support that could shift into crude or suggestive language. The approaches led one woman to dub him “the LinkedIn Lecher”.
Leaked correspondence between directors also revealed corporate governance concerns over White’s decision to pay former chief growth officer Gail Williamson $2.7 million, double what he was earning as chief executive, without disclosing this to investors.
White has run WiseTech since 1994 and has considerable influence as the company’s founder, chief executive and largest shareholder. The logistics software business floated on the ASX in April 2016 and reached a market capitalisation of $41 billion, which fell to $36 billion on Monday.
Asked if he was worried the allegations would affect his position on the board, White responded on Sunday: “Of course, I am concerned about any allegations, even untested allegations.”
He added: “I am always concerned to protect WiseTech, the company that I created from scratch and care deeply about.”
With Nick McKenzie, Kate McClymont and Max Mason.
Loading
