WiseTech Global Shares Plummet Amid Allegations Against CEO Richard White

Overview

WiseTech Global, a leading tech company, experienced a significant drop in share prices following media reports regarding allegations against its billionaire co-founder and CEO, Richard White. The stock closed down 15%, resulting in a loss of US$1.4 billion from Mr. White’s wealth.

Allegations and Reactions

• Media reports from Nine Entertainment publications highlighted allegations of past inappropriate behavior by Mr. White.
• Mr. White reportedly paid millions of dollars to settle allegations made by a former sexual partner in late 2020.
• WiseTech’s board is reviewing the allegations and seeking further information and external advice.
• The stock slump reduced WiseTech’s market value by about A$6 billion, raising concerns about governance controls and potential impacts on the company.
  

  Company Profile
  

• WiseTech Global, founded in 1994, has become a global supply-chain powerhouse through acquisitions.
• It provides software for coordinating shipping operations worldwide, serving major logistics providers like DHL, Sinotrans, Nippon Express, and APL Logistics.
• The company’s market value soared since its 2016 IPO, making Mr. White one of Australia’s wealthiest individuals.
  

  Governance Concerns
  

• Leaked communications from 2019 revealed governance concerns over Mr. White’s decision to pay a former female executive A$2.7 million without investor disclosure.
• Only two current WiseTech directors were on the board at the time of the allegations, prompting crisis meetings to address the situation.

  In conclusion, the allegations against CEO Richard White have not only impacted WiseTech Global’s stock performance but also raised questions about governance practices within the company. Investors and stakeholders will closely monitor the board’s response and the potential implications for the future of WiseTech.