No punishment will be handed down by the WiseTech Global's (ASX : WTC) board to exec chair and founder Richard White after wrapping up an internal investigation.
WiseTech has partially released a board governance review against White after complaints of misconduct and conflicts of interest.
Investigations were based on reports about a number of relationships with female employees and people outside his company. When this was revealed, WiseTech shares dropped almost 25% and White stepped down as CEO of the company he created.
The governance review said that Mr White's representations to the board and the review itself about close personal relationships with an employee and a supplier's associate were "not fully transparent and candid" and "misleading" about some aspects.
Other allegations were unsubstantiated.
The review also noted that “given the ongoing investigation and in order not to prejudice any potential legal proceedings, the board will provide a further update, including any findings, once the investigation has been completed”.
“Mr White accepts the findings of the board review and has committed to and is supportive of a new and more stringent code of conduct in respect of such matters,” the board said.
White said that while the matters were personal, with hindsight he would have more fulsomely disclosed them to the board and handled the contracting process differently.
A month of volatility
February this year was a rollercoaster for the company, with a board exodus, ASIC investigation and White being reappointed as executive chair.
Before the scandal, WiseTech stocks were trading for around 130-$140 - now meandering around the $85 a share mark - despite releasing impressive half-year results and a pipeline of growth opportunities.
The Australian-based logistics tech business itself is in good condition according to its H1 FY25 report, with revenue up 32% to $500.4 million and operating profit increasing 17% to $175.6 million on the back of a $1 billion investment in its 3P product strategy over the past five years to enhance its CargoWise products.
Upcoming guidance is also buoyant, with the company projecting revenue of up to $858 million for FY25 compared to $683.7 million last financial year.
Shares in the $24 billion market-capped WiseTech remained relatively flat to trade at 85c a share.
