The WiseTech Global Ltd (ASX: WTC) share price is in the red after announcing its new CEO.
WiseTech provides CargoWise software, which is used extensively by the global logistics industry.
New WiseTech CEO
The board of the company announced after an external and internal search, the business has appointed Zubin Appoo has been appointed as the new CEO, effective immediately.
WiseTech said Appoo has more than 20 years of experience of leading and growing teams that “deliver strategic outcomes and commercialise market-disrupting products.”
The ASX tech share said he had a “foundational role” in the rapid growth of WiseTech between 2004 to 2018.
The company pointed out he has a mix of skills, including an extensive understanding of WiseTech’s business, its product development pipeline and the global logistics industry.
He will report to the board and will have “full accountability for the performance and growth of the business, including leadership across operations, people, culture, product delivery and commercial performance.”
What will his relationship be with Richard White? WiseTech said he will “collaborate with and support co-founder and executive chair Richard White, with long-term product vision, innovation and strategic investment”.
He’ll be paid a base salary of $700,000 excluding superannuation and a remuneration equity grant of $700,000 annually. There will also be performance incentives.
What about governance?
WiseTech said this appointment “reinforces the board’s commitment to robust governance and clarity of executive roles.”
The business believes this leadership model ensures the “complementary strengths” of both its executive chair and CEO are “fully harnessed”.
The lead independent director Andrew Harrison said:
Zubin’s appointment follows an internal and external process which considered a number of qualified candidates. We’re pleased to welcome Zubin to his new role as WiseTech’s Chief Executive Officer. He brings a strong software and product development background along with knowledge of WiseTech’s products, markets and methods – attributes that were identified as critical by shareholders in the feedback we received through the investor engagement survey commissioned by the Board earlier this year.
In appointing Zubin, the Board sought a leader who could seamlessly partner with our CoFounder and Executive Chair, while also operating independently and decisively as CEO. Zubin understands WiseTech’s DNA and ambition. With his return, we are confident in the strength of our leadership and their ability to drive long-term value for shareholders.
Final thoughts on the WiseTech share price
The business has certainly chosen someone that will provide continuity for WiseTech. The more important question will be is how effectively the business operates in the coming years and how much Richard White is still in control of the overall business.
I think the ASX tech share clearly has a compelling future of profit growth, but it also needs to attract investors to buy shares in the business following all of the governance issues prior to this.
There are other ASX growth shares that may be more appealing to buy today.
