Four board members at Australian tech company WiseTech will resign this week, citing “differing views” around the role of its embattled billionaire founder, Richard White.
The four directors said in a Monday statement to the ASX they were acting 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,” the statement said.
White announced last year he would step down as CEO and transition into a consulting role, after weeks of damaging revelations about his personal life hammered the software company’s reputation and share price.
The new consulting role resembled the old one, including the same salary, and the new title of “founder and founding CEO”. White is also still by far the largest single shareholder in the company, through a 36.6% stake.
The fallout that prompted his October announcement was primarily linked to a dispute he had with a former lover erupting in the federal court, as well as an allegation of intimidation by a former director.
A company-ordered review in November cleared the former chief executive of the bullying and intimidation allegations. White has consistently said he remained committed to WiseTech, and has spoken about the personal challenges he faces.
The company said on 10 February it had received two confidential complaints, from an employee and a supplier to the company, making allegations in relation to White.
“These are being considered in the ongoing board review,” the company said on 10 February.
The four directors – Lisa Brock, Richard Dammery, Michael Malone and Fiona Pak-Poy – will resign on Wednesday after the release of the company’s half-year financial results.
WiseTech, a logistics software business whose main product is CargoWise One, rode the boom in tech shares to hit record highs last year before hitting turbulence.
White’s stake in WiseTech was worth almost $14.9bn before the market opened on Monday, according to Bloomberg. The share price plunged more than 20% in early trading after the latest market update and news of the resignations, wiping about $3bn from the value of White’s shareholding.
RBC Capital Markets said in an analyst note that questions would continue to be raised on governance and how pending court cases distract the founder, and how this may affect the broader business.
