WiseTech Global shares soared 16.5% in the first hour of Friday's trade following the exit of chief executive Richard White, which was announced after Thursday’s close.
The resignation comes just days after White settled a civil court case involving allegations that he reneged on a business deal with a woman with whom he had a personal relationship.
WiseTech's shares have suffered a sharp decline of over 25% in the past week, following reports detailing a series of relationships White had with female employees and individuals outside the company.
In an attempt to mitigate concerns, WiseTech Chair Richard Dammery has been in discussions with investors before announcing White's resignation on Thursday.
Leadership Transition
Andrew Cartledge, currently the company's Chief Financial Officer, will step in as interim CEO. In a statement, White noted his passionate commitment to WiseTech, which he co-founded 30 years ago. "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," he remarked. "I remain absolutely committed to seeing this incredible organisation continue to thrive and grow in the coming years."
White noted that his departure followed months of discussions with Dammery about the company's future leadership. "I strongly believe that now is the right time for me to make this transition, and the Board agrees," he said.
Ongoing Investigation and Future Role
The company announced that White would take a brief leave of absence before assuming a long-term consulting role focused on product and business development.
Dammery praised White's decision, describing it as a move that prioritises the company's and shareholders' best interests.
Meanwhile, WiseTech's board has stated that investigations into the recent media allegations are ongoing. The company has retained the law firms Herbert Smith Freehills and Seyfarth Shaw to assist with the review.
By proposing this change in role, Richard has put the Company and its shareholders first, and he has taken the natural next step in evolving his role as founder to best add value to WiseTech for the long-term," Dammery said.
Despite the current turmoil, WiseTech remains Australia's largest ASX-listed tech company, with a market capitalisation of $35.27 billion. White retains a 37.5% ownership stake in the company, which he co-founded in 1994.
White's annual compensation of $1 million will remain unchanged as he transitions to his consultancy role.
As of 11:20 am (AEDT), Friday, October 25, WiseTech Global (WTC) stock was trading at $115.91, showing a gain of 16.8% from the previous close of $106.07. On Thursday, the stock reached a day low of $97.9 and a day high of $106.5. WiseTech Global's market cap stands at $35.27 billion.