WiseTech Under Scrutiny: Founder's New Role Raises Questions

The Australian Securities and Investments Commission (ASIC) has launched an investigation into WiseTech Global Ltd. (ASX: WTC), following allegations of operational or ethical failures within the company. This probe comes as the company's founder, Richard John White, takes on the role of chairman, raising questions about the company's strategic direction and decision-making processes.

WiseTech, a developer and provider of software solutions to the logistics execution industry, has been facing a series of challenges in recent months. In October 2024, White stepped down as chief executive officer (CEO) after details of a personal legal battle hit the front pages. However, he remained with the company on a full-time basis, under the title "founder and founding CEO," for at least a 10-year term on his existing pay of $1 million a year. White later settled a civil lawsuit with his alleged lover, wellness entrepreneur Linda Rogan.

Concerns about White's conduct extended beyond the personal to the professional, and the board appointed law firms to conduct a review into allegations he failed to disclose personal relationships in the workplace. On February 10, 2025, WiseTech confirmed that it had received two complaints against White, one from an employee and one from a supplier to the company. The board noted that details of White's role at the company were "still in the course of being agreed," with a consultancy agreement or amendments to his pre-existing employment contract yet to be confirmed.

Just two current directors remain after the exodus of four board members, including the chair, Richard Dammery. The resignations were effective Wednesday, February 26, 2025, citing "intractable differences" among the board and "differing views" on White's continued engagement with the company. The company announced that Mike Gregg would commence as a director on Wednesday, "subject to the satisfaction of customary director background checks."

WiseTech's share price plunged on news of the board exodus, falling more than 17% on February 26, 2025. The sell-off indicated the ongoing turmoil has shaken investor confidence in the company. E&P analyst Paul Mason noted that investors he had spoken with wanted to see White remain with the company, as they were concerned that someone on the board was leaking information to the media.

The Australian regulator's probe into WiseTech, following allegations of operational or ethical failures, has significant potential implications for the company's stock price and investor confidence. The market value loss, investor confidence decline, regulatory scrutiny, reputation damage, board changes, and potential legal consequences all contribute to the uncertainty surrounding the company's long-term prospects.

As White takes on the role of chairman, investors should consider the potential impact on the company's strategic direction and decision-making processes. While his continued involvement could provide valuable continuity and expertise, it also presents potential challenges that the board must address to ensure the company's long-term success. By maintaining transparency, accountability, and a focus on the company's strategic vision, WiseTech Global can navigate these challenges and continue to grow and innovate in the logistics execution industry.



In conclusion, the Australian regulator's probe into WiseTech, following allegations of operational or ethical failures, has significant potential implications for the company's stock price and investor confidence. As White takes on the role of chairman, investors should consider the potential impact on the company's strategic direction and decision-making processes. By closely monitoring the company's leadership and governance, reputation and brand, financial performance, regulatory risks, and product innovation, investors can make more informed decisions about the company's long-term prospects.