Embattled billionaire Richard White steps down as WiseTech CEO
Billionaire businessman Richard White has resigned as the chief executive of WiseTech Global, the logistics software giant he founded three decades ago, after he was accused of bullying and inappropriate conduct.
WiseTech Global told investors White would take a brief break before taking up a “full-time, long-term consulting role” where he will be paid the same annual salary – $1 million – that he receives as chief executive.
WiseTech chief executive Richard White has resigned.Credit: Natalie Boog
White’s resignation followed an investigation by The Sydney Morning Herald, The Age and The Australian Financial Review that revealed White paid for a multi-million dollar house for an employee, and had been accused by an outgoing WiseTech Global director of intimidation and bullying.
In a resignation memo published by the mastheads on Thursday, outgoing company director Christine Holman accused White of “sustained intimidation and bullying” and said the board had instead told her to “have ‘founder empathy and accept that is how geniuses are’.”
WiseTech Global shares slumped 6.3 per cent, falling below $100 for the first time in a month. The share slide this week has wiped $8 billion from the value of the company, which is still more than one-third owned by White.
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In a lengthy statement, White said it had been “a challenging time for me personally, my family and close friends, and for the company that I have built and truly love.
“I want to assure all those who have supported WiseTech, as customers, colleagues, and shareholders, that I remain absolutely committed to seeing this incredible organisation continue to thrive and grow in the coming years,” he said on Thursday.
White said his new role would allow him to “focus on product and business growth, to create even greater value for shareholders”.
WiseTech Global has hired Herbert Smith Freehills and Seyfarth Shaw to review issues raised by the Herald, The Age and Financial Review.
“As WiseTech continues to grow, and becomes increasingly international, the board recognises that its governance practices will also continue to evolve. We are taking a fresh look at what we are doing well and what we can enhance,” said WiseTech Global chairman Richard Dammery.
The Sydney Morning Herald, The Age and The Australian Financial Review have previously revealed that White gave, or allegedly promised to give, two multi-million dollar houses to women with whom he had a sexual relationship. One of those homes, a $7 million waterfront property in Melbourne, was transferred to WiseTech Global employee Christine Kontos only last year.
A third property, allegedly purchased for another woman, came to light during a separate Federal Court brawl that ended in a settlement earlier this week. That woman, Sydney wellness entrepreneur Linda Rogan, had applied to set aside a bankruptcy notice that White served upon her over a $90,000 debt. In the affidavits for that case, Rogan said White had promised a property to her and allegedly expected sex in exchange for an investment in her company.
Late on Monday, White and Rogan settled their legal dispute in the Federal Court. People familiar with the negotiations indicated Rogan will receive millions of dollars as part of the settlement.
White is one of the richest people in the country with a fortune of $11.63 billion, according to the latest Financial Review Rich List.
The company has previously said that many of these matters were personal issues for its chief executive, and that White had confirmed to them that he had made the appropriate disclosures about his relationship.
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Brokers covering the company have been split about the impact of White’s departure on WiseTech Global’s growth trajectory.
“We view this as a positive development for [WiseTech Global] given the recent press coverage and potential governance breaches,” said RBC Capital Markets analyst Garry Sherriff in a note to his clients.
“We believe that the underlying growth drivers of the business remain intact and relieving White from his managerial responsibilities to focus on product development is a positive step forward in addressing governance issues without outright dismissal of [WiseTech Global]’s visionary founder.”
Late on Thursday, the Tech Council of Australia said White had also resigned from its board. Last week, it said White would “step aside from public commitments” while he finalised a dispute in the Federal Court.
The council represents the country’s largest technology firms, and White sits on a board that includes Tesla chairwoman Robyn Denholm, Atlassian co-founder Scott Farquhar and Canva co-founder Cliff Obrecht.
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