The WiseTech Global Ltd (ASX: WTC) share price is under the microscope following an update about CEO Richard White.
Richard White has been under pressure in recent days following media reports of alleged aspects of his relationships and financial involvement with former partners, including a female WiseTech manager.
Richard White steps down
Following White’s request, the board has agreed that he will “stand down as director and as CEO with immediate effect, take a short period of leave, and transition into new role with the company he founded and has led for 30 years.”
WiseTech said that when White returns from leave, he will commence a new full-time, long-term consulting role which is focused on product and business development.
The board said that enquiries into specific issues raised in recent media coverage remain ongoing. Herbert Smith Freehills and Seyfarth Shaw have been appointed to assist the review. WiseTech will update the market on the outcome of the review.
The new role
WiseTech revealed that the role’s title is ‘founder and founding CEO’.
It has a 10-year term, with an option to extend for a further five years by mutual agreement.
The compensation will be $1 million per year, which is his current remuneration, the same it has been since 2014.
Richard White comments
WiseTech said White will participate at the annual general meeting (AGM) on 22 November 2024 and the investor day on 3 December 2024. White has been an important part of the WiseTech share price success over the years.
The ASX tech share said White remains “passionately committed to WiseTech and its future”.
White said in the ASX announcement:
It has been a challenging time for me personally, my family and close friends, and for the company that I have built and truly love. I want to assure all those who have supported WiseTech, as customers, colleagues, and shareholders, that I remain absolutely committed to seeing this incredible organisation continue to thrive and grow in the coming years.
The chair of WiseTech Richard Dammery and I have been discussing the evolution of the company and succession of the CEO role for many months. As WiseTech is a product led innovator, it follows that directing my passion, energy, and motivation, to creation of breakthrough product developments that solve the deep problems found in the complex world of Global Logistics is my highest and best use. I strongly believe that now is the right time for me to make this transition and the Board agrees. This new role will allow me to focus on product and business growth, to create even greater value for shareholders and customers over the long-term.
Who will be the new CEO?
Chief financial officer (CFO) Andrew Cartledge will become the interim CEO. Cartledge will be available to stay on beyond his planned retirement at the end of 2025, if needed by the company.
The deputy CFO Carline Pham will become the interim CFO during this period.
A global search for a new CFO is already underway and the board will soon start a global search for a permanent CEO.
Chair Richard Dammery has also committed to spend additional time supporting WiseTech and the executive team during this period.
Final thoughts on the WiseTech share price
The WiseTech share price has dropped 25% since 15 October 2024, so it’s a lot cheaper now.
I’m not sure that customers would stop using the software because of this, and White will continue to be involved in the company’s operations. So, not much may change.
Interested investors may want to invest at this lower price, though I still wouldn’t describe it as ‘cheap’.
I’m still optimistic the company’s profit can keep rising over time, but it wouldn’t be one of the first ASX growth shares I’d buy.
