Key facts
- Richard White has resigned as executive chair of WiseTech Global.
- Raelene Murphy has been appointed as the new independent chair.
- White denies allegations of personal misconduct reported in the media.
- WiseTech shares saw a significant increase following the announcement.
- The company stated that personal media attention is an unnecessary distraction.
Richard White, co-founder of Australian logistics software company WiseTech Global, has stepped down as executive chair with immediate effect. Raelene Murphy, who joined the board earlier this year and was recently named lead independent director, has been appointed as the new independent chair.
White stated that recent personal media attention, which he strenuously denies, has become an unnecessary distraction from the company's business. He also noted that personal attacks could encourage short-selling activity. Media reports in late June alleged that the Australian Federal Police were investigating White over personal matters unrelated to the company's operations.
Murphy expressed that her personal experience with White is contrary to the media reports. WiseTech confirmed that the board and its advisors will continue to monitor media developments. The company's shares rose as much as 10.6% to A$39.12 following the announcement, making them the top performer in the S&P/ASX 200 index. However, the stock has lost nearly 70% since allegations about White's personal life first emerged.
Analysts at RBC Capital Markets commented that while structural improvements in board composition are positive, the market will be looking for evidence of independent operation from the refreshed board, CEO, and Chief Innovation Officer.