SYDNEY – Billionaire Richard White has stepped down as executive chairman of WiseTech Global, just weeks after denying he was involved in human trafficking amid reports he was being investigated by police over claims he used a woman’s immigration status for sex.
WiseTech shares surged as much as 11 per cent in Sydney trading on July 7 as investors welcomed the move to staunch the latest governance crisis at the company, which has been roiled by a series of scandals involving White and his personal life that at one stage wiped around A$37 billion (S$33 billion) from the software maker’s market value.
White, who founded the company and is its largest shareholder, said the recent personal media attention is creating an unnecessary distraction from the strength of WiseTech’s business.
“I strenuously and unequivocally deny the recent allegations in the media,” White said in a statement. “Further, I am conscious that personal attacks on me in the media that are unconnected to the performance of the company nevertheless have the potential to encourage short selling activity.”
White will continue to hold influence at WiseTech, which automates the global logistics industry, from warehousing and border compliance to vessel bookings and trucking, remaining on the board as an executive director and continuing in his role as chief innovation officer. He has previously been reluctant to cede control – he stepped down as chief executive officer in late 2024 after the first allegations against him were aired, only to return months later as executive chairman following a boardroom purge.
WiseTech has also been facing investor pressure to act over the latest allegations after the the Sydney Morning Herald reported that White made up a reason to hire a woman and gave false information in order to get her a visa. The newspaper said the Australian Federal Police’s human exploitation taskforce had started investigating White.
The A$100 billion Australian pension fund Hesta said after proven, the claims compound the risks from “serious governance and leadership issues” it has raised about WiseTech for more than a year. The Australian Council of Superannuation Investors, whose members have more than A$1.9 trillion in funds under management, had called for WiseTech’s board to come up with a plan to restore investor confidence.
Raelene Murphy, who joined WiseTech’s board on Jan 1, will take over as chair effective immediately.
“We see Murphy’s elevation to independent Chair as another step in the right direction toward addressing WiseTech’s alleged governance concerns,” RBC Capital Markets analyst Jackson Lee said in a note. “That said, while structural improvements in board composition are positive, the market will likely want to see ongoing evidence that the refreshed board, CEO, and chief innovation officer operate independently before attributing any meaningful re-rating.”
WiseTech’s crisis detonated in October 2024, with reports that White had paid millions of dollars to a former sexual partner to settle allegations of inappropriate behavior. He stepped down the same month.
While an outside investigation into his earlier conduct found he failed to fully disclose personal relationships with an employee and a supplier, the board decided to take no action, instead citing “the exceptional knowledge and value” White brings to the company.
White is also being investigated by Australia’s securities regulator over share sales he allegedly made when he had relinquished executive duties. BLOOMBERG
