By Tess Bennett and Max Mason
WiseTech Global’s big investors say they expect the software giant’s founder Richard White to make way for a new chief executive over a reasonable timeframe even as an independent shareholder sentiment survey revealed widespread support for the billionaire executive chairman. The results of the investor discussions were made public at the same time asWiseTech said it would appoint its former chairman as its lead independent director to ensure the company was not in breach of ASX rules and to soothe concerns among shareholders about a lack of board oversight.
Andrew Harrison spent nine years on the WiseTech board and was its chairman. He will return to the board alongside former United States Postal Service executive Chris Charlton after the resignation of four independent directors last month who disagreed withWhite’s return to the company. White had been WiseTech’s chief executive but resigned last year amid a board-instigated review of allegations against him. When the four independent directors left, he returned as executive chairman. Earlier in March, WiseTech released the partial findings of the review, which found White had ‘‘made inaccurate and incomplete disclosures concerning the nature and duration of his relationship with’’ an employee. It found he ‘‘entered into a commercial relationship where there were undisclosed conflicts between the interests of [WiseTech] and the personal interests of Mr White’’, and he had ‘‘failed to disclose the nature and duration’’ of a personal relationship. Harrison was WiseTech chairman when then-director Christine Holman resigned from the board in October 2019, accusing White of bullying and intimidation, and a former lover raised allegations against White in late 2020, before a $2 million settlement in 2021. A lack of independent directors has put the company in breach of ASX rules. Those rules require companies to have a three-member audit and risk committee, the majority of which should be independent.
Harrison will take over as lead independent director from Michael Gregg, who rejoined the WiseTech board last month but has faced investor concern about his own independence due to a previous 16-year stint on the board. Gregg was also an early WiseTech investor and remains the business partner of another long-time director and former chairman. The survey of WiseTech’s 50 largest shareholders, conducted by Sodali & Co, found investors expected ‘‘an orderly, seamless and gradual transitioning, over a reasonable timeframe’’ to a new chief executive. It also noted ‘‘overwhelming support’’ for White’s involvement in the company, although shareholders wanted WiseTech to appoint more independent non executive directors.
Ed John, who oversees stewardship for the Australian Council of Superannuation Investors, said the survey findings showed the company had ‘‘significant work to do in order to address investor disquiet’’. ‘‘There is still a long way to go for investors to have confidence in WiseTech’s progress. Further board change and a sensible succession plan are particularly important steps to restore that confidence,’’ John said.
Hailey Kim, an investment analyst at Wilson Asset Management, which holds WiseTech shares in its WAM Leaders Fund, said Charlton’s appointment was a positive for the company. ‘‘He has very extensive experience in the logistics industry, with over 25 years’ experience at UPS. The investor survey found shareholders expected the company to publish a summary of the board review conducted by Herbert Smith Freehills and Seyfarth Shaw. The review, which has been released only in part, found White misled the company over his relationship with employees. White, who was advised by law firm Clayton Utz, threatened to sue the company’s then-independent directors – Richard Dammery, Fiona Pak-Poy, Michael Malone and Lisa Brock. – over the release of the report, which he regarded as defamatory. WiseTech shares closed up $1.18 yesterday, 1.5 per cent higher at $81.23.
