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The personal affairs of WiseTech Global CEO and co-founder Richard White, which have led to a wipeout in the company’s market capitalisation over the past week, have finally taken their toll on the tech billionaire who this afternoon announced he has resigned his position effective immediately.
However, while he has vacated the CEO's chair, White will stay on with WiseTech as a consultant for at least the next 10 years on a salary of $1 million a year.
Under the terms of the consultancy agreement, White's "role title" is designated as "founder and founding CEO" reporting to the chair and the board of the company.
WiseTech this afternoon pointed out that it was White’s decision to quit after he approached the board requesting that he stand down as director and CEO.
The move has been widely anticipated by the market following sensational allegations in court documents this month that revealed an ugly spat between White and former girlfriend Linda Rogan, a wellness entrepreneur based in Sydney.
Daily news feeds have been peppered with salacious allegations of White’s personal affairs after he lodged a bankruptcy notice against Rogan which involved about $90,000 in furniture that she is said to have acquired for a $13 million Sydney mansion that he had bought for her.
The bankruptcy matter was resolved earlier this week, but not before the damage was done - including Rogan’s allegation that White had provided business advice and bought her the home in exchange for sex.
The tabloid-style headlines have led to a wipeout of more than $10 billion in the market value of WiseTech in a little over a week, with shares in the rapidly expanding shipping logistics software group currently trading below $100 for the first time since August.
Despite pressure from major institutional investors on White to resign, the former CEO will still maintain his ties with the company that he co-founded with Maree Isaacs in 1994.
WiseTech says that the former CEO will take “a short period of leave” after which he will return in a “new full-time, long-term consulting role focused on product and business development”.
WiseTech says that White, who is estimated to be worth more than $11 billion, is still “passionately committed to WiseTech and its future”.
“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,” says White in the company’s statement to the ASX.
“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.”
White adds that he has been discussing a succession plan for the business for several months with chairman Richard Dammery.
“As WiseTech is a product-led innovator, it follows that directing my passion, energy, and motivation to creation of breakthrough product developments that solve the deep problems found in the complex world of global logistics is my highest and best use,” he says.
“I strongly believe that now is the right time for me to make this transition and the board agrees. This new role will allow me to focus on product and business growth, to create even greater value for shareholders and customers over the long term.”
Dammery paid tribute to White, citing a “steadfast dedication” to the company.
“Richard is a true giant of the Australian technology industry, and he has built one of our most remarkable corporate success stories,” says Dammery.
“Richard has consistently demonstrated a rare combination of foresight, intellect, capability and ambition. All great entrepreneurs achieve what others consider to be impossible, and Richard has most certainly done this at WiseTech.”
Dammery says the new role for White puts “the company and its shareholders first".
“He has taken the natural next step in evolving his role as founder to best add value to WiseTech for the long-term,” he says.
While White has exited as CEO, his remuneration from the company remains the same under the terms of the new consultancy agreement which comprises a term of 10 years plus a five-year option.
WiseTech says the consultancy fee of $1 million a year is the same as White’s current remuneration, which has not changed since 2014. White remains a major shareholder controlling about 30 per cent of WiseTech.
Chief financial officer Andrew Cartledge has stepped in as interim CEO while the company looks for a permanent replacement.
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