Richard White, billionaire founder of logistics firm WiseTech, has resigned as executive chair amid ongoing criminal investigations and pressure from investors. The announcement came Monday, with White retaining roles as an executive director on the board and chief innovation officer at the $13 billion company.
White has emphatically denied any wrongdoing related to the probes, which include an investigation by the Australian Federal Police’s human exploitation taskforce. This inquiry centers on allegations made by former executive Kathy Phelan, who accused White of exploiting a female employee for sexual purposes. Additionally, the Australian Securities and Investments Commission is conducting a separate inquiry into potential insider trading within WiseTech.
The company’s shares responded positively to the news, climbing more than 9 percent in early trading to $38.72 on Monday. Analysts and investors viewed White’s step back from chairmanship as a necessary but initial measure to address WiseTech’s ongoing governance and leadership challenges. Many stressed the need for sustained efforts to restore confidence and implement a comprehensive structural reset.
WiseTech’s stock continues to trade well below its October 2024 peak, down over 71 percent. In that month, White was compelled to resign as chief executive in the aftermath of a separate alleged sexual misconduct scandal, which intensified scrutiny on his leadership.
The combination of legal scrutiny and investor concern has cast a shadow over the company, which remains a significant player in the global logistics technology sector. White’s decision to relinquish the executive chair role signals an attempt to stabilize operations while investigations proceed.
WiseTech’s board faces the task of guiding the company through this turbulent period, ensuring governance reforms and leadership succession plans adequately address the multiple challenges at hand. Investors and market watchers are expected to closely monitor the company’s next steps as it seeks to regain its footing.