Four of six board members at WiseTech Global are set to resign amid escalating internal discord over founder Richard White’s future role, according to an ASX statement.
Chairman Richard Dammery, Lisa Brock, Fiona Pak-Poy, and Michael Malone are set to step down.
After the first 50 minutes of trading, WiseTech slumped 18.5%, or $24.37 a share, to $97.10.
Their departure is scheduled to occur “after the signing of the half-year financial report and release of half-year results to ASX on Wednesday 26 February 2025”, as noted in the release.
The resigning directors cited profound disagreements, explaining that "this followed intractable differences in the Board and differing views around the ongoing role of the Founder and Founding CEO, Richard White".
In a separate part of the statement, directors indicated that "it is in the best interests of the company to stand aside".
The move comes amid mounting turmoil at the company. WiseTech suspended trading of its stock last Thursday following a series of controversies that include several lawsuits and two confidential complaints against Mr. White, brought by an employee and a supplier.
Billionaire Richard White stepped down as WiseTech CEO in October last year after a joint investigation by The Australian Financial Review, The Sydney Morning Herald, and The Age revealed formal complaints - including from a WiseTech employee and a contractor - alleging inappropriate behaviour, alongside separate claims of bullying and intimidation from a former board member and a confidential settlement with a former lover, all of which he denied.
The shake-up leaves only two board members - Charles Gibbon, who had chaired the board for 12 years, and WiseTech co-founder Maree Isaacs.
To fill one of the vacated independent director seats, early investor Mike Gregg, who served on the board for 17 years until 2022, will join the new three-person board, with additional appointments planned in due course.
This leadership upheaval follows recent strategic and operational setbacks for WiseTech, including a cut in profit guidance and delays in the rollout of new products, further deepening concerns about the company's direction under the shadow of its founder’s controversial management.
Regarding guidance, the statement noted: “The Company now expects revenue to be at the bottom end of the guidance range, due to further delays to the rollout of the three announced Breakthrough Products. EBITDA margin rate is expected to be towards the top of the previously announced range, driven by stronger results from a company-wide efficiency program.”
