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Logistics software group Wisetech Global (ASX: WTC) has been rocked by the resignation of four directors who have left the company in the wake of clashes over the ongoing role of company founder and former CEO Richard White.
Shares in WiseTech took a big hit at the open following the announcement that non-executive directors Lisa Brock, Richard Dammery, Michael Malone and Fiona Pak-Poy were quitting the board just four months after White agreed to being demoted to the role of “founder and founding CEO" at Wisetech in the wake of his personal affairs being aired publicly in court documents last year.
Shares in Wisetech opened almost 23 per cent lower, bottoming at $94 each following today’s announcement. The shares were trading at $98.64, down $23.06, at 10.21am (AEDT).
WiseTech says the four non-executive directors determined that it was in the “best interests of the company to stand aside”.
“This followed intractable differences in the board and differing views around the ongoing role of the founder and founding CEO Richard White,” says the company.
“Their resignation will take effect after the signing of the half-year financial report and release of half-year results to ASX on Wednesday 26 February 2025.”
The problems at WiseTech have been brewing since sensational allegations uncovered in court documents last October revealed an ugly spat between White and former girlfriend Linda Rogan, a wellness entrepreneur based in Sydney.
The matter was raised in court after White 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.
While the bankruptcy matter was ultimately resolved, the fallout has been ongoing for White and WiseTech.
This includes an announcement by WiseTech on 10 February this year that the company had received two confidential complaints, one from an employee and another from a supplier to the company, against White.
While WiseTech did not detail the nature of these complaints, it has been widely reported to have involved inappropriate conduct. The board noted at the time that these complaints were being considered as part of an ongoing board review.
Compounding its woes, WiseTech also announced today that delays in rolling out new products have impacted its targeted revenue which will be at the bottom end of the range guidance.
However, the company says its EBITDA margin is expected to be at the top of the previously announced range, “driven by stronger results from a company-wide efficiency program”.
WiseTech’s revenue forecast for the first half of FY25 ranged from $1.2 billion to $1.3 billion, representing growth of 15 to 25 per cent respectively, while the full-year EBITDA margin was expected to be between 50 and 51 per cent.
White, along with interim CEO Andrew Cartledge and interim CFO Caroline Pham, will present the company’s half-year results this Wednesday.
Despite his demotion in October, White is entitled to stay on at 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 reports to the chair and the board of the company.
Moving quickly to fill the vacated board positions, WiseTech has announced that Mike Gregg, a founding partner of the $100 million venture capital fund Shearwater Capital, will become a director from 26 February 2025 after the release of the half-year results “subject to satisfaction of customary director background checks”.
“It is also proposed that additional directors will be appointed to the board in due course,” says the company.
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