WiseTech Global, one of the largest providers of cloud-based logistics execution software, is in turmoil after four independent members of the board resigned Monday in a power dispute involving founder and former CEO Richard White.
The Sydney-based developer of CargoWise software, which is used by many freight forwarders, cargo airlines and other freight companies, said non-executive board members will resign after the company’s half-year results are released on Wednesday.
WiseTech shares plunged on Monday’s news, wiping out as much as AU$10 billion ($6.4 billion) in value, according to The Sydney Morning Herald. But investors appear relieved that White will still be in charge of the highly profitable company, the newspaper said.
The company halted trading of shares on the Australian Stock Exchange (ASX: WTC) on Thursday and Friday in anticipation of the announcement.
The board members quit after failing to agree on White’s new role. The software company said they had decided it was in the best interest of the company to exit. The three remaining board members have a long history of loyalty to White, The Sydney Morning Herald said.
White was forced to step down as CEO in October after media reports surfaced of alleged bullying and payments to a former lover, but he maintained control of the company. It appointed CFO Andrew Cartledge to serve as interim CEO, but White returned to WiseTech after a 30-day suspension under the new title of founder and founding CEO. The company and White were in the process of amending his preexisting employment contract to determine his new role. White was mostly cleared of wrongdoing in a preliminary internal review.
Earlier this month, WiseTech said it had received two confidential complaints, from an employee and a supplier. The board was put under pressure last week when fresh allegations emerged that White had provided a female employee with financial support and help with her visa in return for an ongoing sexual relationship, according to Sydney’s main newspaper.
WiseTech appointed Mike Gregg as a director on Monday and said more directors will be appointed in the near future.
WiseTech has grown rapidly through a series of acquisitions and product launches, including a $414 million deal in 2023 for Blume Global, a provider of intermodal rail management technology for carriers in North America.
Click here for more FreightWaves/American Shipper stories by Eric Kulisch.
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